Market News

By Johnbosco Agbakwuru, Abuja

President Bola Tinubu has hailed the $1.26 billion financing deal for Phase 1, Section 2 of the Lagos-Calabar Coastal Highway as a strong sign of rising investor confidence in Nigeria’s infrastructure sector and reform-driven economy.

He praised the Federal Ministries of Finance and Works, along with the Debt Management Office, for their teamwork in sealing the deal.

The administration, he added, is steadfast in pursuing innovative funding for vital national projects.”This is a major achievement. Closing this transaction ensures uninterrupted work on the Lagos-Calabar Coastal Highway.

“We will continue exploring viable funding for strategic economic and infrastructure initiatives nationwide,” Tinubu said in a statement issued Friday by his Special Adviser on Information and Strategy, Bayo Onanuga.

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Spanning 55.7 kilometres from Eleko in Lekki to Ode-Omi, this section links key economic corridors to boost trade and logistics.The deal builds on the earlier $747 million financing for Phase 1, Section 1, highlighting the project’s appeal to investors.

First Abu Dhabi Bank, FAB, fully underwrote the facility, with risk support from the Islamic Corporation for the Insurance of Investment and Export Credit, ICIEC,—its first Nigerian deal amid recent reforms.

SkyKapital served as Lead Financial Adviser, handling structuring, lender coordination, and execution. Earth Active provided environmental and social advisory to meet IFC Performance Standards, Equator Principles, and ESG best practices. Hogan Lovells acted as international counsel, with 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, Mr. Wale Edun, said the fund will be deployed responsibily to ensure timely delivery.

He said: “The signing on December 19, 2025, of the $1.26 billion financing for Phase 1 Section 2, following the successful closing 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.”

Signed on December 19, 2025, the deal—featuring Afreximbank participation and partial ICIEC coverage, he noted that the project is Nigeria’s largest fully underwritten road financing and ICIEC’s biggest transaction ever.

Hitech Construction Company Limited is delivering the work, earning lender praise for rapid progress, quality engineering, and discipline.

A Value-for-Money assessment by SkyKapital, with the Federal Ministry of Works and independent review by GIBB, upholds government transparency and fiscal discipline.

This milestone underscores Nigeria’s shift from vision to execution under President Tinubu’s Renewed Hope Agenda, signaling robust market confidence.