President Bola Ahmed Tinubu has described the $1.26 billion financing secured for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway as a clear indication of growing investor confidence in Nigeria’s infrastructure drive and reform-focused economy.
The President commended the Federal Ministries of Finance and Works, as well as the Debt Management Office, for their collaboration in successfully finalising the transaction. He reaffirmed his administration’s commitment to exploring innovative and sustainable funding options for critical national infrastructure projects.
“This is a major achievement. Closing this transaction guarantees uninterrupted progress on the Lagos–Calabar Coastal Highway,” Tinubu said. “We will continue to pursue viable financing solutions for strategic economic and infrastructure initiatives across the country.”
The section covered by the new financing spans 55.7 kilometres, stretching from Eleko in the Lekki axis to Ode-Omi. It is expected to connect major economic corridors, strengthen trade flows, and enhance logistics efficiency along Nigeria’s coastal belt.
The latest deal follows the earlier $747 million financing secured for Phase 1, Section 1 of the project, further underscoring strong investor interest in the highway. First Abu Dhabi Bank (FAB) fully underwrote the facility, with risk mitigation support from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). Notably, the transaction marks ICIEC’s first engagement in Nigeria since recent economic reforms.
SkyKapital acted as Lead Financial Adviser, overseeing the structuring, lender coordination, and execution of the deal. Earth Active provided environmental and social advisory services to ensure compliance with IFC Performance Standards, the Equator Principles, and global ESG best practices. Hogan Lovells served as international legal counsel, while Templars acted as Nigerian legal advisers.
Describing the transaction as “a defining moment in Nigeria’s infrastructure journey,” the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said the funds would be deployed responsibly to guarantee timely project delivery.
He noted that the signing of the $1.26 billion facility on December 19, 2025—following the successful close of the $747 million financing for Phase 1, Section 1—has firmly positioned the Lagos–Calabar Coastal Highway as a flagship initiative under President Tinubu’s Renewed Hope Agenda.
According to the minister, the deal, which includes participation from Afreximbank and partial coverage by ICIEC, represents Nigeria’s largest fully underwritten road infrastructure financing to date, as well as ICIEC’s biggest transaction globally.
A Value-for-Money assessment conducted by SkyKapital in collaboration with the Federal Ministry of Works, and independently reviewed by GIBB, affirmed adherence to transparency, accountability, and fiscal discipline throughout the process.
The successful close of the financing signals Nigeria’s transition from planning to execution in large-scale infrastructure delivery, reinforcing market confidence in the country’s economic reforms under the Tinubu administration.
Tinubu Applauds $1.26bn Financing Deal for Lagos–Calabar Coastal Highway
