President Bola Tinubu has welcomed the successful completion of a $1.26 billion financing arrangement for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing it as a significant step forward in Nigeria’s infrastructure development agenda.
The President’s commendation was contained in a statement released on Friday by his Special Adviser on Information and Strategy, Bayo Onanuga.
Tinubu praised the Federal Ministry of Finance, the Ministry of Works and the Debt Management Office for working together to secure the funding, noting that the deal would guarantee steady progress on the project.
According to the statement, the President described the coastal highway as a transformative national asset.
“The Lagos–Calabar Coastal Highway is one of the most important infrastructure projects of this administration. When completed, its impact will speak for itself,” Tinubu was quoted as saying.
Phase 1, Section 2 of the highway covers about 55.7 kilometres, stretching from Eleko in the Lekki axis of Lagos to Ode-Omi.
The Presidency said the section is expected to improve logistics, strengthen economic corridors and enhance trade connectivity across the coastal region.
The $1.26 billion deal follows an earlier $747 million secured for Phase 1, Section 1, a development the President said underscores his administration’s commitment to innovative and sustainable financing for large-scale projects.
“This milestone reflects our resolve to pursue creative funding options for critical national infrastructure and demonstrates growing confidence in Nigeria’s economic reforms,” the statement added.
The financing package was fully underwritten by First Abu Dhabi Bank, with risk cover provided by the Islamic Corporation for the Insurance of Investment and Export Credit.
The transaction marks ICIEC’s first major deal in Nigeria since recent institutional and regulatory reforms.
Financial advisory services were provided by SkyKapital, while Earth Active (UK) served as environmental and social adviser in line with international environmental, social and governance standards.
Legal advisory roles were handled by Hogan Lovells as international counsel and Templars as Nigerian counsel.
Also reacting to the development, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the deal as a landmark achievement.
“The funds will be applied responsibly to ensure timely delivery of the project. This transaction ranks among the largest ever supported by ICIEC and reflects strong confidence in Nigeria’s infrastructure pipeline,” Edun said.
Construction of the highway is being executed by Hitech Construction Company Limited. The government said lenders have expressed satisfaction with the quality of engineering work and the pace of execution on site.
The Lagos–Calabar Coastal Highway is a proposed 700-kilometre road linking Lagos in the Southwest to Calabar in the South-South. It is a flagship project under President Tinubu’s Renewed Hope Agenda, aimed at boosting trade, tourism and the blue economy along Nigeria’s coastline.
While critics have raised concerns about the project’s cost, procurement process and the demolition of some coastal structures, the Federal Government maintains that the highway will unlock major economic opportunities and significantly reduce travel time between the Southwest and South-South regions.
