Nigeria has obtained a $747 million syndicated loan to support the construction of Phase 1, Section 1 of the Lagos-Calabar Coastal Highway.
In a statement on Wednesday, the Director of Information and Public Relations at the Ministry of Finance, Mohammed Manga, said the loan will finance the 47.47-kilometre segment between Victoria Island and Eleko Village in Lagos.
He noted that this is the largest syndicated loan for a road project in Nigeria’s history, reflecting strong international investor confidence in the country’s reform agenda and infrastructure development strategy.
He stated that Deutsche Bank served as the global coordinator, initial mandated lead arranger, and bookrunner, and also participated in the syndicate alongside other regional and international lenders.
The director further noted that the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) offered partial insurance to mitigate political and commercial risks.
“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,” he said.
“Other lenders involved the African Export-Import Bank, 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.”
Manga explained that the structure is designed to foster a strategic partnership between the government and the private sector, effectively aligning technical execution with financing solutions.
The statement noted that this approach allows for accelerated project delivery while boosting private sector interest in investing in critical national infrastructure.
He added that construction of Phase 1, Section 1 of the highway is already more than 70 percent complete.
“The highway, constructed using Continuously Reinforced Concrete Pavement (CRCP), reflects a commitment to long-term resilience and efficiency. Engineered for a minimum lifespan of 50 years with minimal maintenance, it offers outstanding durability and cost-effectiveness,” the statement said.
“The project’s design and implementation have been shaped by comprehensive technical, legal, and environmental and social assessments, ensuring alignment with the highest international standards.
“The Lagos-Calabar Coastal Highway will serve as a vital trade and logistics corridor, enhancing regional integration, tourism, reducing transport costs, and creating jobs. A tolling strategy is currently being finalised to ensure the project’s operational and financial sustainability.
“These mechanisms will support a self-sustaining, concession-backed framework, helping to ensure long-term viability. Financing for subsequent phases is already being structured, with strong interest from regional and international investors.”
Manga stated that the landmark transaction signals a renewed interest from international financial institutions in Nigeria, spurred by bold macroeconomic reforms and the government’s focus on delivering bankable and transformative infrastructure projects.
