Nigeria has secured a landmark $747 million loan to underwrite the initial stretch of its ambitious Lagos–Calabar Coastal Highway, spanning from Victoria Island to Eleko Village. Arranged by Deutsche Bank acting as global coordinator, initial mandated lead arranger, and bookrunner the financing package is the largest syndicated road‐infrastructure loan ever concluded in Nigeria. It brings together a diverse consortium of regional and international institutions, including First Abu Dhabi Bank (as Agent and Intercreditor Agent), the African Export-Import Bank (Afrexim), the Abu Dhabi Exports Office (ADEX), the ECOWAS Bank for Investment and Development (EBID), Nexent Bank N.V., and Zenith Bank through its UK, Paris, and Lagos branches. To strengthen the transaction’s credit profile, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) has provided partial political and commercial risk insurance, reducing lender exposure and enhancing overall bankability.

Under the project’s EPC+F model combining engineering, procurement, construction, and financing the contract has been awarded to Hitech Construction Company, a leading Nigerian infrastructure firm. This integrated approach aligns technical delivery with funding disbursement, enabling rapid mobilization of resources and minimizing the usual lag between financial close and construction start. As of now, over 70 percent of Phase 1, Section 1 is already under way, with work progressing on the installation of Continuously Reinforced Concrete Pavement (CRCP). This pavement technology, chosen for its exceptional durability and low maintenance needs, employs continuous steel reinforcement to control cracking and is designed to last at least 50 years even under heavy coastal traffic and challenging environmental conditions.

Behind the scenes, extensive technical, environmental, legal, and social impact studies have guided every aspect of the highway’s design. Alignment analyses, drainage modeling, and stakeholder consultations ensured that the new corridor not only meets rigorous global engineering standards but also upholds environmental safeguards and community interests. The resulting infrastructure will dramatically reduce travel times cutting journey duration between Victoria Island and Eleko Village by up to 60 percent while facilitating the smoother movement of goods between seaports, industrial zones, and agricultural hubs. This enhanced connectivity is expected to generate thousands of direct and indirect jobs throughout the construction phase and beyond, stimulating growth in real estate, tourism, and service sectors along Nigeria’s southern coast.

Beyond its national benefits, the Lagos–Calabar Coastal Highway is poised to reinforce Nigeria’s leadership role within the Economic Community of West African States (ECOWAS) by strengthening regional trade corridors and integration. Finance Minister and Coordinating Minister of the Economy Wale Edun emphasized that the successful closing of this syndication underscores growing global investor confidence in President Bola Tinubu’s reform agenda and Nigeria’s broader infrastructure pipeline. He noted that the transaction “showcases our commitment to sustainable, transparent, and catalytic infrastructure financing,” and signals Nigeria’s readiness to embrace public-private partnerships as a cornerstone of its development strategy.

With Phase 1, Section 1 nearing completion, attention is already turning to securing financing for subsequent sections that will ultimately link Lagos to the Cameroonian border. The blueprint established by this landmark deal combining a robust syndicate structure, partial risk insurance, and an EPC+F delivery model offers a replicable path for funding future segments of the coastal highway and other transformative infrastructure projects nationwide. In doing so, Nigeria not only cements a vital transportation artery but also exemplifies how innovative financing and engineering solutions can accelerate inclusive economic growth.

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