Market News

By : Terhemba Daka

President Bola Tinubu has said the successful closure of a $1.26 billion financing deal for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway reflects growing investor confidence in Nigeria’s infrastructure sector and the country’s reform-driven investment climate.

The President commended the Federal Ministries of Finance and Works, alongside the Debt Management Office, for their collaboration in concluding the transaction, noting that his administration remains committed to innovative financing solutions for critical national projects.

“This is a major achievement. Closing this transaction ensures that work on the Lagos–Calabar Coastal Highway will continue without interruption. Our administration will keep exploring viable funding opportunities to execute strategic economic and infrastructure projects across the country,” Tinubu said, in a statement issued by Special Adviser on Information and Strategy, Bayo Onanuga, on Friday.

Phase 1, Section 2 spans approximately 55.7 kilometres, linking Eleko in Lekki to Ode-Omi, key economic corridors expected to significantly boost trade efficiency and logistics connectivity.

The deal follows the earlier $747 million financing secured for Phase 1, Section 1, underscoring the project’s scalability and bankability.

The facility was fully underwritten by First Abu Dhabi Bank (FAB), with risk mitigation support from Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), marking ICIEC’s first Nigerian transaction since recent institutional and regulatory reforms.

The structure signals renewed international confidence in Nigeria’s capacity to deliver large-scale infrastructure.

SkyKapital acted as Lead Financial Adviser, coordinating deal structuring, lender engagement, and execution.

Environmental and social advisory services were provided by Earth Active, ensuring compliance with IFC Performance Standards, the Equator Principles, and global ESG best practices.

Legal advisory services were led by Hogan Lovells as International Counsel and Templars as Nigerian Legal Counsel. Describing the transaction as “a defining moment in Nigeria’s infrastructure journey,” the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the funds would be deployed responsibly to ensure timely delivery.

“The signing on December 19, 2025, of the $1.26 billion financing for Phase 1, Section 2, following the successful close of the $747 million facility for Phase 1, Section 1, firmly establishes the Lagos-Calabar Coastal Highway as a flagship project of President Tinubu’s Renewed Hope Agenda,” Edun said.

He noted that the deal represents the first fully underwritten road infrastructure financing of such scale in Nigeria, with participation from Afreximbank and partial coverage by ICIEC, making it the largest ICIEC-supported transaction since the institution’s inception.

Construction is being executed by Hitech Construction Company Limited, whose rapid progress and early opening of key sections have earned commendation from lenders for engineering quality, operational discipline, and execution speed.

In line with the Federal Government’s commitment to transparency and fiscal discipline, a comprehensive Value-for-Money assessment was conducted by SkyKapital in collaboration with the Federal Ministry of Works and independently reviewed and validated by GIBB.

The successful close of Phase 1, Section 2, marks a clear step-change in market confidence, demonstrating Nigeria’s ability to move decisively from vision to execution, and from reform to delivery, under President Tinubu’s Renewed Hope Agenda.