In a significant development for infrastructure in Nigeria and West Africa, Deutsche Bank has led a $747 million syndicated loan to finance Phase 1 Section 1 of the Lagos-Calabar Coastal Highway. This section spans from Victoria Island to Eleko Village, covering 47+47km, and is part of Nigeria’s Renewed Hope Infrastructure Development Agenda.
This loan represents the largest syndicated road infrastructure financing in Nigeria, indicating strong global investor confidence in the country’s reform efforts and infrastructure plans. Deutsche Bank served as Global Coordinator, Initial Mandated Lead Arranger, and Bookrunner, participating alongside other regional and international lenders. The Islamic Corporation for the Insurance of Investment and Export Credit provided partial political and commercial risk insurance.
The syndicate includes support from development finance institutions, export credit agencies, and international commercial banks. Notable participants include First Abu Dhabi Bank, which also acted as Agent across all facilities and Intercreditor Agent; African Export-Import Bank; Abu Dhabi Exports Office; ECOWAS Bank for Investment and Development; Nexent Bank N.V.; and Zenith Bank.
Hitech Construction Company was awarded the EPC+F contract for this project. This strategic partnership between the government and private sector aims to align technical execution with financing solutions to expedite project delivery while attracting private investment in priority infrastructure. Currently, construction of Phase 1 Section 1 is over 70% complete.
The highway uses Continuously Reinforced Concrete Pavement (CRCP) technology for durability and efficiency. It is designed for a minimum lifespan of 50 years with minimal maintenance requirements. The project’s design adheres to high international standards through comprehensive assessments.
The Lagos-Calabar Coastal Highway will serve as an essential trade corridor enhancing regional integration, tourism, reducing transport costs, and creating jobs. A tolling strategy is being finalized to ensure operational sustainability. Financing for subsequent phases is underway with interest from investors.
Wale Edun, Minister of Finance and Coordinating Minister of the Economy for Nigeria stated: “This deal reflects the success of our macroeconomic reforms…It positions the country as being ready for a full transition…through Public Private Partnerships.”
Hon. David Umahi, Minister of Works noted: “This transaction is a vote of confidence in Nigeria’s economic reform agenda…”
Dany Abboud from Hitech Construction commented: “We are proud to deliver this historic project…ensures unmatched durability…”
Dr. Khalid Khalafalla from ICIEC added: “ICIEC is proud to join…in realizing the Lagos–Calabar Coastal Highway Project…”
The transaction underscores renewed engagement by international financial institutions with Nigeria due to its bold macroeconomic reforms.