President Bola Tinubu has secured a major vote of confidence from international financiers with the successful close of a $1.126 billion financing package for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, reinforcing the administration’s strategy of leveraging structured external capital to drive large-scale infrastructure delivery.
The financing, confirmed in a statement issued Friday by presidential spokesman Bayo Onanuga, covers 55.7 kilometres of the coastal highway, linking Eleko in Lekki to Ode-Omi, a strategic corridor expected to significantly enhance logistics efficiency, trade flow and regional economic integration.
Beyond the headline figure, the transaction represents one of the most consequential infrastructure financings executed under President Tinubu’s Renewed Hope agenda — both in scale and in structure.
A Bankability Test Passed
Crucially, the deal was fully underwritten by First Abu Dhabi Bank and Afreximbank, with partial risk mitigationprovided by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). According to officials, this marks ICIEC’s largest Nigeria-linked transaction since the country’s recent fiscal and regulatory reforms, underscoring renewed investor confidence in Africa’s largest economy.
The successful close also follows an earlier $747 million financing secured for Phase 1, Section 1, establishing the Lagos–Calabar Coastal Highway as a scalable and bankable project, rather than a politically driven public works announcement.
President Tinubu described the transaction as a critical milestone, noting that it ensures uninterrupted construction while signalling the administration’s intention to continue deploying innovative financing models for priority infrastructure.
“This is a major achievement. Closing this transaction means the Lagos–Calabar Coastal Highway will continue unimpeded,” the President said.
Institutional Coordination and Risk Discipline
The financing was executed through coordinated efforts involving the Federal Ministry of Finance, the Ministry of Works, and the Debt Management Office, reflecting a deliberate attempt to impose fiscal discipline and institutional alignment on large public projects.
According to Finance Minister and Coordinating Minister of the Economy, Wale Edun, the transaction represents the first fully underwritten financing of this magnitude for a Nigerian road infrastructure project, setting a new benchmark for future deals.
“This facility will be deployed responsibly and within agreed timelines,” Edun said, describing the project as a defining moment in Nigeria’s infrastructure financing architecture.
Governance, ESG and Transparency Signals
Beyond capital mobilisation, the transaction was structured to meet international governance and sustainability standards. SkyKapital served as Lead Financial Adviser, while Earth Active (UK) provided Environmental and Social advisory services, ensuring compliance with IFC Performance Standards, the Equator Principles, and global ESG benchmarks.
Legal advisory roles were handled by Hogan Lovells as International Counsel and Templars as Nigerian Counsel, further reinforcing the transaction’s credibility within global capital markets.
In line with transparency commitments, the Ministry of Works conducted a comprehensive Value-for-Money assessment, independently reviewed by GIBB, to address cost efficiency and delivery risks — a response to long-standing public concerns over inflated infrastructure contracts.
Delivery as the Ultimate Test
Construction of the highway is being executed by Hitech Construction Company Limited, whose early delivery of key sections reportedly influenced lender confidence. However, analysts note that sustained execution — rather than financing announcements — will determine whether the project becomes a transformational economic asset or another fiscal burden.
If delivered as planned, the Lagos–Calabar Coastal Highway could reshape Nigeria’s coastal trade corridor, unlock regional tourism and industrial activity, and strengthen national logistics integration from the South-West to the South-South.
The Bigger Signal
For markets and development partners, the transaction sends a broader message: Nigeria is attempting to shift from debt-heavy, budget-driven infrastructure to structured, risk-managed project financing anchored on institutional reform.
Whether this model can be replicated — and whether fiscal discipline is maintained as project pipelines expand — will determine the long-term success of Tinubu’s infrastructure-led growth strategy.
For now, the $1.126bn close stands as one of the administration’s clearest demonstrations that reform, credibility and capital mobilisation can align — if delivery follows rhetoric.
Sub Zero ✔
Godwin Okafor is the Publisher & CEO of Naija247news Media Group LLC, an independent investigative news platform delivering accurate, data-driven reporting on Nigerian and global politics, economy, finance, and business. Founded in October 2010, Naija247news specializes in developmental journalism, providing timely insights and analysis to readers across Nigeria and the diaspora.
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