Tinubu hails $1.26bn Lagos–Calabar Highway deal
President Bola Tinubu has commended the successful completion of a $1.26 billion financing agreement for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, calling this development a major enhancement to Nigeria's ongoing infrastructure growth initiatives.
This recognition was included in a statement released on Friday by the President's Special Adviser on Information and Strategy, Bayo Onanuga, who revealed that the funding arrangement would ensure continuous construction work on the ambitious coastal highway project.
Tinubu specifically praised the Federal Ministry of Finance, the Ministry of Works, and the Debt Management Office for their collaborative efforts in securing the financing, highlighting that their teamwork reflects the administration's commitment to delivering essential national infrastructure.
Stressing the long-term benefits of the project, Onanuga remarked, "The Lagos–Calabar Coastal Highway stands as one of President Bola Tinubu’s greatest contributions to Nigeria. Those who have criticized this landmark project will feel regret once the Tinubu administration completes the road."
As per the statement, the President indicated that this financing achievement demonstrates his administration's dedication to exploring innovative funding options for major national projects, asserting that the coastal highway is a focal point of the government's economic and infrastructure development strategy.
Phase 1, Section 2 of the Lagos–Calabar Coastal Highway spans about 55.7 kilometers, extending from Eleko in the Lekki area of Lagos State to Ode-Omi.
"This section is projected to bolster key economic corridors, enhance logistics efficiency, and improve national trade connectivity. This financing comes after an earlier $747 million was secured for Phase 1, Section 1, underscoring the project's scalability and attractiveness to international investors," the statement noted.
The funding agreement was entirely backed by First Abu Dhabi Bank, with risk mitigation support from the Islamic Corporation for the Insurance of Investment and Export Credit, marking ICIEC's first transaction in Nigeria following recent institutional and regulatory reforms.
Additionally, the statement mentioned that the structure of this deal reflects growing investor confidence in Nigeria's improved investment climate.
SkyKapital served as the Lead Financial Adviser for the transaction, while the United Kingdom-based firm Earth Active provided environmental and social advisory services in line with international environmental, social, and governance standards.
Legal advisory roles were fulfilled by Hogan Lovells as International Counsel and Templars as Nigerian Legal Counsel.
The statement also featured remarks from the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who referred to the financing deal as a pivotal moment in Nigeria's infrastructure development journey.
He remarked, “The funds will be utilized responsibly to ensure the project is delivered on time, adding that this transaction ranks among the largest supported by ICIEC since the institution was established. The highway construction is being executed by Hitech Construction Company Limited, with progress on-site commended by lenders for engineering quality and speed of execution.”
The Lagos–Calabar Coastal Highway is envisioned as a 700-kilometer interstate road intended to connect Lagos in the South-West with Calabar in the South-South region of Nigeria.
This project is a key initiative under President Bola Tinubu's Renewed Hope Agenda and aims to revolutionize transportation, trade, and economic integration along Nigeria’s coastline.
By securing funding for Section 2 after already obtaining $747 million for Section 1, the Federal Government asserts it is demonstrating project scalability and proving to international investors that the highway is financially viable, rather than just a conceptual plan.
Nevertheless, critics have expressed concerns regarding the project's total cost, the lack of an open competitive bidding process for the contract awarded to Hitech Construction Company, and the demolition of businesses along sections of the Lagos coastline.
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