Nigeria Secures $747 Million Syndicated Loan for Lagos-Calabar Coastal Highway as Global Investors Back Infrastructure Drive
Written by Okafor Joseph Afam | SpringnewsNG Media Limited | Tel: +234 703 949 0464 | Email: springnewsng@gmail.com | July 10,2025
Nigeria Secures $747 Million Global Syndicated Loan for Lagos-Calabar Coastal Highway Phase 1
Nigeria has successfully secured a $747 million syndicated infrastructure loan to fund Phase 1, Section 1 of the Lagos-Calabar Coastal Highway, marking a major milestone in the federal government’s Renewed Hope Infrastructure Development Agenda.
The Federal Ministry of Finance announced the deal on Wednesday, describing it as the largest syndicated road infrastructure loan in Nigeria’s history, and a clear demonstration of international investor confidence in the country’s economic reform and infrastructure drive.
The funding will support the 47.47-kilometre stretch from Victoria Island to Eleko Village in Lagos State—already over 70% completed.
Global Financial Giants Back Nigeria’s Road Ambitions
The loan was coordinated by Deutsche Bank, serving as Global Coordinator, Initial Mandated Lead Arranger, and Bookrunner. The syndicate also includes:
- First Abu Dhabi Bank (Agent and Intercreditor Agent)
- African Export-Import Bank (Afreximbank)
- ECOWAS Bank for Investment and Development (EBID)
- Nexent Bank N.V.
- Zenith Bank, through its UK, Paris, and Nigerian branches
To further strengthen the financing structure, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is providing partial political and commercial risk insurance, ensuring a robust risk mitigation framework.
Durable Engineering with Global Standards
The project is being delivered by Hitech Construction Company, a leading Nigerian engineering firm, under an Engineering, Procurement, Construction plus Financing (EPC+F) model. The highway is built using Continuously Reinforced Concrete Pavement (CRCP), a world-class technology engineered for a minimum lifespan of 50 years with minimal maintenance.
“We are proud to show that Nigerian engineering, backed by global finance, can meet the highest international standards,” said Dany Abboud, Managing Director of Hitech Construction.
Economic Game-Changer for Nigeria and West Africa
More than just a road, the Lagos-Calabar Coastal Highway is designed to become a strategic trade and logistics corridor. It is expected to:
- Enhance regional integration across West Africa
- Boost tourism and local enterprise
- Lower transportation costs
- Generate thousands of jobs during and after construction
A tolling strategy is being finalised to ensure the project’s financial sustainability under a concession-backed framework.
Global Confidence in Nigeria’s Infrastructure Outlook
Finance Minister Wale Edun hailed the deal as a defining moment for Nigeria’s infrastructure financing evolution.
“This transaction reflects the success of Nigeria’s macroeconomic reforms and reaffirms global investor confidence in our future,” Edun said.
“It’s also a testament to Mr. President’s commitment to mobilising private capital for national development.”
He added that the deal positions Nigeria for full-scale adoption of public-private partnerships (PPPs) in infrastructure, from design and construction to operation and maintenance.
“It signals Nigeria’s readiness for global partnerships in infrastructure and sends a clear message on contract sanctity and investor protection,” Edun emphasized.
Infrastructure Reform to Drive Inclusive Growth
David Umahi, Minister of Works, described the loan as “a vote of confidence in Nigeria’s infrastructure agenda”, while reaffirming that the highway is a national strategic asset that will transform transportation and logistics across the region.
Khalid Khalafalla, CEO of ICIEC, highlighted the deal’s wider impact:
“Our sovereign risk coverage enables this project to unlock regional trade, reduce urban congestion, and promote inclusive economic growth,” he said.
“This initiative supports job creation, small business development, and sustainable development goals across West Africa.”
The $747 million syndicated financing deal for the Lagos-Calabar Coastal Highway is a landmark achievement for Nigeria’s infrastructure development. It reflects not only global investor trust, but also the growing use of innovative financing structures and PPPs to unlock critical national assets. With construction already at 70% completion and strong backing from international lenders, this project sets the stage for a new era of resilient, inclusive, and investor-driven development in Nigeria.
Written by Okafor Joseph Afam
Publisher, SpringnewsNG Media Limited
Tel: +234 703 949 0464
Email: springnewsng@gmail.co
