The Federal Government has secured a $747 million syndicated loan to finance Phase 1, Section 1 of the Lagos-Calabar Coastal Highway project. This major infrastructure development project stretches 47 kilometers from Victoria Island to Eleko Village in Lagos.
The Ministry of Finance announced, on Wednesday, July 9, that Deutsche Bank led the syndicated loan, with other lenders including First Abu Dhabi Bank, African Export-Import Bank, and Zenith Bank. The highway aims to boost regional trade, logistics, and tourism, while enhancing Nigeria's infrastructure.
The 47km stretch is over 70% complete, built using Continuously Reinforced Concrete Pavement for high durability and minimal maintenance.
A statement by the Director of Information and Public Relations, Mr. Mohammed Manga, indicated that it was the first syndicated road infrastructure loan of its size in Nigeria and “a strong signal of global investor confidence in the country’s reform trajectory and infrastructure pipeline.”
The ministry said: “Deutsche Bank acted as Global Coordinator, Initial Mandated Lead Arranger and Bookrunner and participated in the syndicate, alongside other regional and international lenders.
“The Islamic Corporation for the Insurance of Investment and Export Credit (“ICIEC”) provided partial political and commercial risk insurance.
“The syndicate includes support from development finance institutions, export credit agencies and international commercial banks—notably First Abu Dhabi Bank, also acting as Agent across all facilities and Intercreditor Agent, whose involvement underscores its strong and growing support for Nigeria.
“Other lenders involved are the African Export-Import Bank (“Afrexim”), 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).
“The project is structured as an EPC+F (Engineering, Procurement, Construction + Financing) contract awarded to Hitech Construction Company, one of Nigeria’s leading infrastructure firms.
“This structure aims at a strategic partnership between the Government and the private sector, seamlessly aligning technical execution with financing solutions.
“It enables fast-track project delivery while unlocking and maximizing private sector appetite for investment in the country’s priority infrastructure.”
Speaking on the loan, Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, was quoted as saying: “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, PPPs.
“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.”
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