FG Secures $747 Million Loan For Lagos-Calabar Coastal Highway Project

The Federal Government has secured a $747 million loan to help fund the first section of the Lagos-Calabar Coastal Highway, running from Victoria Island to Eleko Village.

The Ministry of Finance confirmed the deal on Tuesday, July 9, noting that the loan was arranged by Deutsche Bank.

A statement from Mohammed Manga, Director of Information and Public Relations, ssid this is the largest syndicated road infrastructure loan Nigeria has ever secured.

He added that the loan is “a strong signal of global investor confidence in the country’s reform trajectory and infrastructure pipeline.”

The ministry said: “Deutsche Bank acted as Global Coordinator, Initial Mandated Lead Arranger and Bookrunner and participated in the syndicate, alongside other regional and international lenders.

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

“The syndicate includes support from development finance institutions, export credit agencies and international commercial banks—notably First Abu Dhabi Bank, also acting as Agent across all facilities and Intercreditor Agent, whose involvement underscores its strong and growing support for Nigeria. 

“Other lenders involved are the African Export-Import Bank (“Afrexim”), the Abu Dhabi Exports Office (“ADEX”), the ECOWAS Bank for Investment and Development (“EBID”), Nexent Bank N.V. (formerly known as Credit Europe Bank N.V.) and Zenith Bank (through its UK, Paris and Nigeria offices). 

“The project is structured as an EPC+F (Engineering, Procurement, Construction + Financing) contract awarded to Hitech Construction Company, one of Nigeria’s leading infrastructure firms. 

“This structure aims at a strategic partnership between the Government and the private sector, seamlessly aligning technical execution with financing solutions. 

“It enables fast-track project delivery while unlocking and maximizing private sector appetite for investment in the country’s priority infrastructure.” 

According to the ministry, construction on this first phase is already more than 70% complete.

The road is being built using Continuously Reinforced Concrete Pavement (CRCP), which is known for its durability and long-term cost efficiency.

The Minister of Finance and Coordinating Minister of the Economy, Wale Edun said the loan is a result of Nigeria’s ongoing economic reforms and signals renewed interest from international investors.

He said, “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.

“The closing of this market defining financing is yet another testament to Mr President’s commitment to accelerate the participation of the private sector in infrastructure financing and development. 

“It positions the country as being ready for a full transition to the design, development, financing as well as operations and management of critical public infrastructure through Public Private Partnerships, PPPs.

“It signals to investors and private sector participants, the sophistication and maturity of the Nigerian market and commitment of the government to sanctity of contracts and innovative structures to fund critical national infrastructure that will deliver sustained and inclusive growth.”

KanyiDaily recalls that President Bola Tinubu was n talks with the Japan International Cooperation Agency (JICA) to speed up the ¥15 billion ($110 million) emergency loan aimed at tackling food insecurity across Nigeria.