Tinubu Hails $1.26bn Financing Boost for Lagos–Calabar Coastal Highway
President Bola Tinubu has applauded the Federal Ministry of Finance for securing $1.26 billion in financing for Phase One, Section Two of the Lagos–Calabar Coastal Highway, describing the development as a significant milestone for one of Africa’s most far-reaching infrastructure undertakings.
PulseNets learnt that the president also commended the Federal Ministry of Works and the Debt Management Office for their coordinated role in concluding the landmark transaction, which is expected to accelerate construction on the coastal superhighway.
In a statement issued on Friday by presidential spokesman Bayo Onanuga, Tinubu reaffirmed his administration’s commitment to deploying innovative financing mechanisms to unlock large-scale economic and 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 One, Section Two of the project covers approximately 55.7 kilometres, stretching from Eleko in Lekki to Ode-Omi. The corridor is expected to enhance trade efficiency, strengthen strategic economic routes, and significantly improve logistics connectivity across Nigeria. The latest financing follows the earlier $747 million secured for Phase One, Section One—an indication, PulseNets reported, of the project’s growing bankability and long-term scalability.
The financing package was fully underwritten by First Abu Dhabi Bank (FAB), with risk mitigation support provided by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). PulseNets obtained that the transaction represents ICIEC’s first major engagement in Nigeria since recent regulatory and institutional reforms, a move seen as a strong signal of renewed investor confidence in the country’s evolving investment climate.
SkyKapital acted as the lead financial adviser, overseeing the transaction’s structuring, lender coordination, and execution. Environmental and social advisory responsibilities were handled by Earth Active (UK), ensuring alignment with IFC Performance Standards, the Equator Principles, and global ESG best practices. Legal advisory services were provided by Hogan Lovells as International Counsel and Templars as Nigerian Legal Counsel.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the financing as a turning point in Nigeria’s infrastructure development, assuring that the funds would be deployed responsibly to deliver the project within schedule.
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PulseNets learnt that the $1.26 billion facility, signed on December 19, 2025, followed the successful close of the $747 million financing for Section One on July 9, 2025, firmly positioning the Lagos–Calabar Coastal Highway as a flagship initiative under President Tinubu’s Renewed Hope Agenda.
“This financing is particularly notable as it represents, for the first time, a truly underwritten transaction of this magnitude for a Nigerian road infrastructure project,” Edun said.
“The facility was fully underwritten by First Abu Dhabi Bank (USD 262 million) and Afreximbank (USD 500), with partial coverage provided by ICIEC, making it the largest ICIEC-supported transaction since the institution’s creation,” he added.
