The federal government says it has secured $1.26 billion in financing for the execution of the second section of the first phase of the Lagos-Calabar coastal highway.
Announcing the loan in a statement on Friday, the presidency said President Bola Tinubu commended the ministries of finance and works, and the Debt Management Office (DMO) for collaborating on the latest transaction.
Tinubu was said to have made commitments that the federal government would continue to explore innovative financing options to fund critical projects nationwide.
“This is a major achievement, and closing this transaction means the Lagos-Calabar Coastal Highway will continue unimpeded,” Tinubu was quoted as saying.
“Our administration will continue to explore available funding opportunities to execute critical economic and infrastructural projects across the country.”
Also commenting, Wale Edun, the minister of finance, said the loan deal was signed on December 19, 2025.
He said the fund will be deployed responsibly and judiciously to ensure the project is delivered within set timelines.
“The signing on December 19, 2025, of USD1.26 billion financing for Phase one — section two of the Lagos-Calabar Coastal road marks a defining moment in Nigeria’s infrastructure journey, following the successful closing of the USD 747 million financing for Phase one section one on July 9, 2025,” Edun said.
“Collectively, these landmark transactions firmly establish the Lagos-Calabar Coastal Highway as one of the defining flagship projects of President Bola Ahmed Tinubu’s Renewed Hope agenda, embodying the administration’s commitment to bold, transformational infrastructure.”
Edun said the latest deal marks the first fully underwritten transaction of “this scale for a Nigerian road infrastructure project”.
“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,” Edun said.
According to the statement, phase 1, section 2 of the highway covers approximately 55.7 kilometres, connecting Eleko in Lekki to Ode-Omi.
“SkyKapital acted as Lead Financial Advisor, coordinating structuring, lender engagement, and execution,” the statement reads.
“Environmental and Social advisory services were provided by Earth Active (UK), ensuring complete alignment with the IFC Performance Standards, the Equator Principles, and international ESG best practices. Hogan Lovells, as International Counsel, and Templars, as Nigerian Legal Counsel, led the legal advisory services.”
In line with the federal government’s commitment to transparency and fiscal discipline, the statement noted that a comprehensive value-for-money (VfM) assessment was conducted by SkyKapital with the ministry of works and independently reviewed and confirmed by GIBB Holdings.
David Umahi, minister of works, had said the first phase of the project would be completed on May 29, 2025.
On May 31, Tinubu inaugurated the completed 30km section one of phase one of the Lagos-Calabar coastal road.
