Apparently convinced about the potential economic benefits of the ongoing Lagos-Calabar Coastal Highway project for investors, Deutsche Bank is leading a $747 million syndicated loan to finance Phase 1 Section 1 of the highway project, spanning from Victoria Island to Eleko Village 47+47km.
Under the funding arrangement, which is the first syndicated road infrastructure loan of its value in Nigeria, Deutsche Bank acted as Global Coordinator, Initial Mandated Lead Arranger and Bookrunner syndicated with other regional and international lenders, while the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) provided partial political and commercial risk insurance.
Specifically, the syndicate includes support from development finance institutions, export credit agencies and international commercial banks, including First Abu Dhabi Bank, also acting as Agent across all facilities and Intercreditor Agent. Other members of the syndicate are the African Export-Import Bank (Afreximbank), the Abu Dhabi Exports Office (ADEX), the ECOWAS Bank for Investment and Development (EBID), Nexent Bank N.V. (formerly known as Credit Europe Bank N.V.) and Zenith Bank through its UK, Paris and Nigeria offices.
By its design, the Lagos-Calabar Coastal Highway project is structured as an Engineering, Procurement, Construction + Financing (EPC+F) and the contract awarded to Hitech Construction Company Limited.
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The EPC+F aims at creating a strategic partnership between the government and the organized private sector (OPS), aligning technical execution with financing solutions. This structure enables timely completion of the projects while unlocking and maximizing private sector appetite for investment in the country’s priority infrastructure.
With the construction of Phase 1 Section 1 already now at over 70% completion level, the highway, constructed using Continuously Reinforced Concrete Pavement (CRCP), represents the government’s commitment to long-term resilience and efficiency.
According to its design, the highway is engineered for a minimum lifespan of 50 years with minimal maintenance, it offers outstanding durability and cost-effectiveness, and the design and implementation have been shaped by comprehensive technical, legal, and environmental and social assessments, ensuring alignment with the highest global standards.
Available information on the project indicated that is tolling strategy is being finalised to ensure the project’s operational and financial sustainability and by implication support a self-sustaining, concession-backed framework, helping to ensure long-term viability.
The funding of the other phases of the project is also being structured, with strong interest from regional and international investors.
Speaking on the financing support for the project by development banks and other partners, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said: “This deal reflects the success of our macroeconomic reforms and the return of international capital to support Nigeria’s development. We are focused on financing infrastructure in ways that are sustainable, transparent, and catalytic—and this transaction is a model of that vision in action.
“The closing of this market defining financing is yet another testament to Mr President’s commitment to accelerate the participation of the private sector in infrastructure financing and development. It positions the country as being ready for a full transition to the design, development, financing as well as operations and management of critical public infrastructure through Public Private Partnerships.
“It signals to investors and private sector participants, the sophistication and maturity of the Nigerian market and commitment of the Government to sanctity of contracts and innovative structures to fund critical national infrastructure that will deliver sustained and inclusive growth”, the minister added.
In his remarks, the Minister of Works, David Umahi, further clarified: “This transaction is a vote of confidence in Nigeria’s economic reform agenda. The Lagos-Calabar Highway is a strategic national asset, and this financing sets a strong precedent for future public-private infrastructure partnerships.”
Also, Managing Director of Hitech Construction Company Limited, Dany Abboud, said: “We are proud to deliver this historic project. With over 70 per cent of Phase 1 Section 1 complete, we are showing that Nigerian engineering—backed by structured international finance—can meet global standards. The use of CRCP technology ensures unmatched durability and cost-efficiency.”
This is even as CEO of ICIE, Dr. Khalid Khalafalla, enthused: “ICIEC is proud to join the Nigerian government and our co-financiers in realizing the Lagos–Calabar Coastal Highway Project. Through ICIEC’s sovereign risk coverage solution, we are unlocking vital infrastructure that will ease congestion, stimulate regional trade, and drive inclusive economic growth.
“This initiative will create employment opportunities, build local capacity, and bolster small and medium-sized enterprises, demonstrating our steadfast commitment to sustainable development, multimodal connectivity, and prosperity for communities across West Africa”, Khalafalla added.
Experts believe that when completed the multi-billion dollar highway project will serve as a vital trade and logistics corridor that will enhance regional integration, tourism, moderate transport fares, and create jobs for youths and other categories of the labour force.
