President Bola Tinubu has commended the Federal Ministry of Finance for securing a $1.26 billion financing package to fund Phase 1, Section 2 of the ambitious Lagos-Calabar Coastal Highway project.
The deal, closed on December 19, 2025, represents a major step forward in what is described as one of Africa's largest and most transformative infrastructure initiatives.
In a statement, President Tinubu praised the collaborative efforts of the Ministries of Finance and Works, along with the Debt Management Office, in structuring the transaction.
He emphasized his administration's commitment to innovative funding mechanisms for vital national projects.
"This achievement ensures uninterrupted progress on the Lagos-Calabar Coastal Highway," the President stated.
"We will continue pursuing creative financing options to deliver essential infrastructure and drive economic growth across Nigeria."
The 55.7-kilometer Section 2 stretches from Eleko in Lekki to Ode-Omi, linking critical economic zones and promising to improve trade logistics, reduce travel times, and enhance connectivity along the coastal corridor.
This latest financing builds on the $747 million secured earlier in 2025 for Phase 1, Section 1, underscoring the project's growing appeal to international investors and its viability under Nigeria's ongoing economic reforms.
The package was fully underwritten by First Abu Dhabi Bank (FAB), with risk mitigation provided by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) marking ICIEC's debut transaction in Nigeria following recent regulatory improvements.
This structure highlights increasing global confidence in the country's investment environment.SkyKapital served as the lead financial advisor, overseeing structuring and lender coordination.
Environmental and social compliance was advised by Earth Active (UK), adhering to IFC Performance Standards, Equator Principles, and global ESG guidelines.
Legal support came from Hogan Lovells (international counsel) and Templars (Nigerian counsel).
Finance Minister Wale Edun called the deal a "defining moment" for Nigeria's infrastructure development, assuring that the funds would be used efficiently to meet project deadlines.
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