Tinubu Hails $1.26bn Lagos-Calabar Highway Deal as Boost to Investor Confidence

President Bola Tinubu has lauded the $1.26 billion financing secured for Phase 1, Section 2 of the Lagos-Calabar Coastal Highway, describing it as a clear signal of growing investor trust in Nigeria’s infrastructure sector and reform-driven economy.

He commended the collaborative efforts of the Federal Ministries of Finance and Works, along with the Debt Management Office, for successfully closing the deal.

“This is a major achievement. Closing this transaction ensures uninterrupted work on the Lagos-Calabar Coastal Highway. We will continue exploring viable funding for strategic economic and infrastructure initiatives nationwide,” Tinubu said in a statement released Friday by his Special Adviser on Information and Strategy, Bayo Onanuga.

The 55.7-kilometre section stretches from Eleko in Lekki to Ode-Omi, linking key economic corridors to boost trade and logistics. The deal follows the earlier $747 million financing for Phase 1, Section 1, highlighting the project’s strong appeal to investors.

First Abu Dhabi Bank (FAB) fully underwrote the facility, with risk coverage from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC)—its first Nigerian transaction amid recent reforms. SkyKapital served as Lead Financial Adviser, coordinating structuring and execution, while Earth Active provided environmental and social advisory to meet IFC Performance Standards, Equator Principles, and ESG best practices. Hogan Lovells acted as international counsel, with Templars as Nigerian legal counsel.

Describing the deal as “a defining moment in Nigeria’s infrastructure journey,” Finance and Coordinating Minister Wale Edun assured that the funds will be deployed responsibly for timely project completion.

“The signing on December 19, 2025, of the $1.26 billion financing for Phase 1, Section 2, following the $747 million facility for Phase 1, Section 1, firmly establishes the Lagos-Calabar Coastal Highway as a flagship project of President Tinubu’s Renewed Hope Agenda,” Edun said.

Featuring Afreximbank participation and partial ICIEC coverage, the project represents Nigeria’s largest fully underwritten road financing and ICIEC’s biggest transaction ever. Hitech Construction Company Limited is executing the work, earning praise from lenders for rapid progress, quality engineering, and discipline.

A Value-for-Money assessment by SkyKapital, alongside independent review by GIBB and oversight from the Federal Ministry of Works, reinforces government transparency and fiscal discipline.

This milestone exemplifies Nigeria’s transition from vision to execution under President Tinubu’s Renewed Hope Agenda, reflecting strong market confidence in the country’s economic and infrastructure initiatives.

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