Nigeria: Govt Secures $747m Loan for Lagos-Calabar Highway Construction

10 July 2025
Vanguard (Lagos)
By Emma Ujah, Abuja Bureau Chief

The Federal Government has secured a $747 million loan to finance Phase 1, Section 1 of the Lagos-Calabar Coastal Highway project, stretching from Victoria Island to Eleko Village.

The Ministry of Finance announced the development on Wednesday, disclosing that the facility was arranged by Deutsche Bank. According to a statement by the Director of Information and Public Relations, Mr. Mohammed Manga, the deal represents the largest syndicated road infrastructure loan in Nigeria's history.

"This milestone signals growing global investor confidence in Nigeria's reform agenda and infrastructure development pipeline," the ministry stated.

Deutsche Bank acted as Global Coordinator, Initial Mandated Lead Arranger, and Bookrunner, joining other regional and international financiers in the syndicate. The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) provided partial political and commercial risk insurance.

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Other key lenders include First Abu Dhabi Bank (serving as Agent and Intercreditor Agent), 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 Nigerian branches.

The project is structured as an EPC+F (Engineering, Procurement, Construction + Financing) contract awarded to Hitech Construction Company, a leading Nigerian infrastructure firm. This arrangement integrates technical execution with funding, enabling swift project delivery and encouraging private-sector investment.

Construction work on this section of the highway is already over 70% complete. The road is being built using Continuously Reinforced Concrete Pavement (CRCP), a durable technology designed for a minimum lifespan of 50 years with minimal maintenance.

The ministry emphasized that the highway's design adheres to top global standards, shaped by extensive technical, legal, environmental, and social assessments.

Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said the deal reflects renewed international confidence in Nigeria's economy under President Bola Tinubu's administration.

"This transaction showcases our commitment to sustainable, transparent, and catalytic infrastructure financing," Edun said. "It highlights Nigeria's readiness to embrace Public-Private Partnerships in delivering critical infrastructure and reinforces our commitment to honoring contracts and driving inclusive economic growth."

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