The Federal Government has secured a $747 million syndicated loan to finance Phase 1, Section 1 of the Lagos-Calabar Coastal Highway, which stretches from Victoria Island to Eleko Village in Lagos State.

The Ministry of Finance announced the development on Tuesday, stating that Deutsche Bank coordinated the loan as the Global Coordinator, Initial Mandated Lead Arranger, and Bookrunner. The facility marks Nigeria’s first syndicated loan of this scale for road infrastructure, signaling renewed global investor confidence in the country’s economic reforms and infrastructure agenda.

According to Mohammed Manga, Director of Information and Public Relations at the ministry, the project has attracted support from a broad range of financial institutions. These include international and regional banks, development finance institutions, and export credit agencies. Notably, First Abu Dhabi Bank is acting as the Agent across all facilities and Intercreditor Agent.

Other lenders involved in the syndicate include:

African Export-Import Bank (Afrexim)

Abu Dhabi Exports Office (ADEX)

ECOWAS Bank for Investment and Development (EBID)

Nexent Bank N.V. (formerly Credit Europe Bank N.V.)

Zenith Bank (via its UK, Paris, and Nigeria branches)

To mitigate risk, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is providing partial political and commercial risk insurance.

The project is structured under an EPC+F model (Engineering, Procurement, Construction plus Financing), awarded to Hitech Construction Company, one of Nigeria’s top infrastructure firms. This model aligns execution with financing and is designed to fast-track delivery while enhancing private sector participation in national infrastructure.

The ministry noted that construction on Phase 1, Section 1 is already over 70% complete. The road is being built using Continuously Reinforced Concrete Pavement (CRCP), which ensures a minimum 50-year lifespan with minimal maintenance. The project has been developed in compliance with international technical, legal, environmental, and social standards.

Speaking on the loan, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the transaction highlights the success of Nigeria’s macroeconomic reforms and the return of international capital to support development.

“This deal is a model of sustainable, transparent, and catalytic infrastructure financing,” Edun stated. “It underscores the President’s commitment to expanding private sector involvement in infrastructure and demonstrates Nigeria’s readiness to transition to full Public-Private Partnership (PPP) models for the development and management of critical national infrastructure.”