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.
The development marks another major funding milestone for the flagship infrastructure project designed to enhance connectivity along Nigeria’s coastal corridor.
Announcing the loan in a statement on Friday, the presidency said President Bola Tinubu commended the ministries of finance and works, as well as the Debt Management Office, for their collaboration in concluding the transaction. The president reiterated his administration’s commitment to exploring 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, the Minister of Finance, Wale Edun, disclosed that the loan agreement was signed on December 19, 2025. He said the funds would be deployed responsibly and judiciously to ensure the project is delivered within the approved 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 further stated that the deal represents the first fully underwritten transaction of its 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,” he said.
According to the statement, Phase One, Section Two of the highway spans approximately 55.7 kilometres, linking Eleko in Lekki to Ode-Omi. SkyKapital acted as Lead Financial Advisor, coordinating the project’s structuring, lender engagement, and execution.
The statement added that Environmental and Social advisory services were provided by Earth Active (UK) to ensure alignment with IFC Performance Standards, the Equator Principles, and international ESG best practices, while Hogan Lovells served as International Counsel and Templars acted as Nigerian Legal Counsel on the transaction.
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 Ministry of Works and independently reviewed and confirmed by GIBB Holdings.
Earlier, the Minister of Works, David Umahi, had said the first phase of the project would be completed on May 29, 2025. On May 31, President Tinubu inaugurated the completed 30-kilometre Section One of Phase One of the Lagos-Calabar coastal road.
