President Bola Tinubu has commended the Federal Ministry of Finance and other key agencies for successfully closing a landmark $1.26 billion financing deal for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing it as a major boost to Nigeria’s infrastructure development drive.
In a statement issued by his Special Adviser on Information and Strategy, Bayo Onanuga, the President said the financing milestone marked significant progress in the delivery of what he described as Africa’s most ambitious and transformative highway project.
President Tinubu applauded the Ministries of Finance and Works, alongside the Debt Management Office, for their collaboration in concluding the transaction.
He reaffirmed his administration’s commitment to exploring innovative financing options to fund critical infrastructure projects nationwide.
“This is a major achievement, and closing this transaction means the Lagos–Calabar Coastal Highway will continue unimpeded. Our administration will continue to explore available funding opportunities to execute critical economic and infrastructural projects across the country,” the President said.
Phase 1, Section 2 of the project spans approximately 55.7 kilometres, linking Eleko in Lekki to Ode-Omi. The corridor is expected to significantly enhance logistics efficiency, trade facilitation and economic connectivity across the country.
The latest financing follows the earlier closure of a $747 million facility for Phase 1, Section 1, reinforcing the project’s scalability and bankability.
The funding was fully underwritten by First Abu Dhabi Bank, with risk mitigation support from the Islamic Corporation for the Insurance of Investment and Export Credit, marking ICIEC’s first transaction in Nigeria since recent institutional and regulatory reforms.
The deal, according to the Presidency, reflects growing investor confidence in Nigeria’s reformed investment climate and capacity to deliver large-scale infrastructure.
SkyKapital served as Lead Financial Adviser, overseeing transaction structuring, lender engagement and execution, while Earth Active (UK) provided environmental and social advisory services to ensure compliance with international environmental, social and governance standards. Legal advisory services were handled by Hogan Lovells as international counsel and Templars as Nigerian counsel.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the financing as a defining moment in Nigeria’s infrastructure journey. He assured that the funds would be deployed responsibly and in line with project timelines.
According to Edun, the December 19, 2025 signing of the $1.26 billion facility, combined with the earlier $747 million financing, firmly establishes the Lagos–Calabar Coastal Highway as a flagship project of President Tinubu’s Renewed Hope Agenda.
He noted that the transaction represents the first fully underwritten financing of this scale for a Nigerian road project, with participation from First Abu Dhabi Bank and Afreximbank, and partial coverage by ICIEC.
Construction of the highway is being handled by Hitech Construction Company Limited, whose progress on site and early opening of completed sections have earned commendation from lenders for engineering quality, operational discipline and execution speed.
The Presidency added that, in line with its commitment to transparency and fiscal responsibility, a comprehensive value-for-money assessment was conducted by SkyKapital in collaboration with the Federal Ministry of Works and independently reviewed by GIBB.
The successful financial close of Phase 1, Section 2, the statement said, signals a clear increase in market confidence and underscores Nigeria’s ability to translate reforms into tangible infrastructure delivery under President Tinubu’s Renewed Hope Agenda.
