Nigeria has obtained a $747 million syndicated loan to fund the Lagos-Calabar coastal highway’s first phase, section 1.
Mohammed Manga, the ministry of finance’s director of communications and public relations, said in a statement on Wednesday that the funding covers the 47.47-kilometer distance between Victoria Island and Lagos’ Eleko Village.
According to Manga, the funding is the first syndicated road infrastructure loan of such magnitude in Nigeria and is a clear indication of international investors’ faith in the nation’s infrastructure pipeline and reform trajectory.
Along with other regional and foreign lenders, he added Deutsche Bank participated in the syndicate and served as the global coordinator, first mandated lead arranger, and bookrunner.
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The director also mentioned the partial commercial and political risk insurance offered by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
He said, “The syndicate has support from international commercial banks, export credit agencies, and development finance institutions, particularly First Abu Dhabi Bank, which is also acting as an agent across all facilities and an intercreditor agent, whose involvement highlights its strong and growing support for Nigeria.”
The ECOWAS Bank for Investment and Development (EBID), the African Export-Import Bank, the Abu Dhabi Exports Office (ADEX), Nexent Bank N.V. (formerly Credit Europe Bank N.V.), and Zenith Bank (via its offices in the UK, Paris, and Nigeria) were among the other lenders.
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“Hitech Construction Company, one of Nigeria’s top infrastructure companies, was given the project, which is structured as an EPC+F (Engineering, Procurement, Construction + Financing) contract.”
According to Manga, the framework seeks to establish a strategic alliance between the public and private sectors, facilitating the smooth integration of technical implementation and funding options.
The statement claims that it maximizes and unlocks the private sector’s desire to contribute in the nation’s essential infrastructure while facilitating expedited project delivery.
According to him, phase 1 section 1 of the highway’s construction is already more than 70% finished.
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“The highway’s Continuously Reinforced Concrete Pavement (CRCP) construction shows a dedication to long-term efficiency and robustness. It provides exceptional durability and cost-effectiveness and is engineered to last at least 50 years with little maintenance, according to the statement.
Comprehensive technical, legal, environmental, and social examinations have influenced the project’s design and execution, guaranteeing compliance with the highest international standards.
As a crucial commerce and logistical route, the Lagos-Calabar Coastal Highway would boost tourism, regional integration, lower transportation costs, and generate employment. In order to guarantee the project’s operational and financial sustainability, a tolling scheme is presently being finalized.
“These mechanisms will help to ensure long-term viability by supporting a framework that is self-sustaining and backed by concessions.” Subsequent phase financing is already being arranged, and both domestic and foreign investors are quite interested.
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According to Manga, the historic deal shows how international financial institutions have reengaged with Nigeria as a result of daring macroeconomic reforms and a dedication to completing transformative, bankable projects.
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The success of Nigeria’s macroeconomic reforms and the return of foreign investment to support its development are reflected in the transaction, according to Wale Edun, minister of finance and coordinating minister of the economy.
He stated that the deal is an example of the government’s ambition in action and that it is committed to financing infrastructure through sustainable, transparent, and revolutionary methods.
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Edun stated, “The completion of this market-defining financing is yet another indication of Mr. President’s determination to expedite the private sector’s involvement in infrastructure financing and development.”
It creates the impression that the nation is prepared to fully embrace public-private partnerships for the planning, building, funding, and management of vital public infrastructure.
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“It conveys to investors and private sector players the level of maturity and sophistication of the Nigerian market as well as the government’s dedication to upholding the integrity of contracts and creative financing methods for vital national infrastructure that will support inclusive and long-term growth.”
The deal represents a show of confidence in Nigeria’s economic reform strategy, according to Works Minister David Umahi.
“This financing establishes a strong precedent for future public-private infrastructure partnerships, and the Lagos-Calabar Highway is a strategic national asset,” he stated.
The managing director of Hitech Construction Company Limited, Dany Abboud, said he was proud to have completed the coastal highway project.
“With more than 70% of Phase 1 Section 1 finished, we are demonstrating that Nigerian engineering can meet international standards with the support of structured international finance,” Abboud added.
“Unmatched durability and cost-efficiency are ensured by the use of CRCP technology.”
Speaking as well, ICIEC CEO Khalid Khalafalla said the organization was proud to have worked with the Nigerian government and other lenders to complete the Lagos–Calabar coastal highway project.
“We are unlocking essential infrastructure that will reduce traffic, promote regional trade, and propel inclusive economic growth through ICIEC’s sovereign risk coverage solution,” he stated.
Khalafalla stated that the initiative will benefit small and medium-sized enterprises, create jobs, and increase local skills, highlighting ICIEC’s strong commitment to sustainable development, better regional connection, and shared prosperity throughout West African regions.
