Lagos-Calabar highway loan signals global investor confidence as Nigeria secures $747m syndicated facility to accelerate critical infrastructure projects

The Nigerian Government has secured a $747 million syndicated facility to support the construction of the Lagos-Calabar Coastal Highway, marking a major infrastructure milestone and demonstrating renewed international confidence in the country’s reform agenda.

Also read: Lagos-Calabar Coastal Highway projected to inject $12 billion annually into Nigeria’s GDP

The Lagos-Calabar highway loan was arranged by Deutsche Bank, which served as Global Coordinator, Initial Mandated Lead Arranger, and Bookrunner.

According to a statement signed by Mohammed Manga, Director of Information and Public Relations, the facility covers Phase 1, Section 1 of the project—from Victoria Island to Eleko Village in Lagos.

This deal represents Nigeria’s largest road infrastructure financing of its kind and was described as a market-defining transaction.

“The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) provided partial political and commercial risk insurance,” the statement noted.

“The syndicate includes development finance institutions, export credit agencies, and top-tier international banks.”

Other participating lenders include First Abu Dhabi Bank, acting as the Agent across all facilities; African Export-Import Bank (Afrexim); Abu Dhabi Exports Office (ADEX); ECOWAS Bank for Investment and Development (EBID); Nexent Bank N.V.; and Zenith Bank via its UK, Paris, and Nigeria branches.

Manga stated that the project is structured as an EPC+F contract (Engineering, Procurement, Construction plus Financing) awarded to Hitech Construction Company, one of Nigeria’s premier infrastructure firms.

This model is designed to fast-track delivery while maximising private sector interest in national projects.

Construction work on Phase 1, Section 1 is already more than 70% complete. The road is being constructed using Continuously Reinforced Concrete Pavement (CRCP), engineered for a minimum 50-year lifespan with limited maintenance needs.

“The Lagos-Calabar highway loan will deliver lasting value through durability, reduced maintenance, and long-term cost efficiency,” Manga said, adding that the project has been subjected to rigorous technical, legal, environmental, and social assessments in line with international standards.

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, hailed the facility as a landmark achievement and a sign of Nigeria’s economic direction under President Bola Tinubu’s administration.

“This deal reflects the success of our macroeconomic reforms and the return of international capital to support Nigeria’s development,” Edun stated.

“We are focused on financing infrastructure in ways that are sustainable, transparent, and catalytic—and this transaction is a model of that vision in action.”

He added, “The Lagos-Calabar highway loan is a testament to Mr President’s commitment to expanding private sector participation in public infrastructure development. It positions Nigeria for a full transition to the financing, design, operations, and management of critical assets via Public-Private Partnerships.”

Also read: Landowners sue FG over N15tn Lagos-Calabar highway

“This facility signals to global investors that Nigeria respects the sanctity of contracts and welcomes innovative funding structures that promote inclusive growth,” Edun concluded.

Source: Read more at theheute.com.ng