Nigeria's Coastal Highway Passes $747 m Funding Milestone

Arabian Post

3 days ago

Nigeria has secured a $747 million syndicated loan, led by Deutsche Bank, to fund the initial 47.47‑kilometre phase of its flagship coastal highway spanning from Victoria Island to Eleko Village in Lagos. The Ministry of Finance confirmed the financing on Wednesday, marking a record for road infrastructure funding in the country.
Lenders in the syndicate include First Abu Dhabi Bank, African Export‑Import Bank, Abu Dhabi Exports Office, ECOWAS Bank for Investment and Development, Nexent Bank and a consortium of Zenith Bank branches. Coverage for partial political and commercial risk is provided by the Islamic Corporation for the Insurance of Investment and Export Credit.
The highway is built under an Engineering, Procurement, Construction and Financing contract awarded to Hitech Construction Company. Officials report that over 70 per cent of Phase 1 Section 1 is complete, utilising Continuously Reinforced Concrete Pavement designed to deliver at least 50 years of durability with minimal upkeep.
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Nigeria's Finance Minister, Wale Edun, described the syndication as emblematic of sustained confidence from international investors in Nigeria's reform agenda and infrastructure vision. He highlighted that the structure exemplifies the country's embrace of public–private partnerships, stating that it 'positions the country as ready for a full transition to the design, development, financing as well as operations and management of critical public infrastructure'.
Minister of Works, David Umahi, added that the financing sets a 'strong precedent' for future infrastructure partnerships, signalling global affirmation of Nigeria's economic advancement and governance standards.
Hitech Construction's Managing Director, Dany Abboud, emphasised the standards-setting nature of the project. He said Nigerian engineering, backed by structured international finance, 'can meet global standards,' with CRCP providing cost-efficiency and resilience.
ICIEC's CEO, Khalid Khalafalla, noted that the sovereign risk coverage facilitates vital infrastructure development, easing congestion, expanding trade and boosting inclusive growth across West Africa.
The broader Lagos–Calabar Coastal Highway is projected to stretch approximately 700 km from Lagos to Calabar, with estimated total costs around $11 billion and an eight‑year delivery timeline. The government is also finalising a toll‑based concession framework to ensure the project's operational sustainability and attract private capital.
Implementation of CRCP technology and investor‑backed financing reflects a shift towards durable, future‑proof infrastructure capable of servicing Nigeria's growing population and trade needs while fostering regional economic integration and logistics efficiency.