Business
Landmark $747 MILLION Syndicated Loan For Phase 1 Section 1 Of The Lagos -Calabar Costal Highway
In a major milestone for Nigerian and West African infrastructure development, Deutsche Bank led a $747 million syndicated loan to finance Phase 1 Section 1 (from Victoria Island to Eleko Village 47+47km) of the Lagos-Calabar Coastal Highway, a flagship project under Nigeria’s Renewed Hope Infrastructure Development Agenda.
This marks the first syndicated road infrastructure loan of its size in Nigeria and is a strong signal of global investor confidence in the country’s reform trajectory and infrastructure pipeline.
Deutsche Bank acted as Global Coordinator, Initial Mandated Lead Arranger and Bookrunner and participated in the syndicate, alongside other regional and international lenders. The Islamic Corporation for the Insurance of Investment and Export Credit (“ICIEC”) provided partial political and commercial risk insurance. The syndicate includes support from development finance institutions, export credit agencies and international commercial banks—notably First Abu Dhabi Bank, also acting as Agent across all facilities and Intercreditor Agent, whose involvement underscores its strong and growing support for Nigeria. Other lenders involved are the African Export-Import Bank (“Afrexim”), the Abu Dhabi Exports Office (“ADEX”), the ECOWAS Bank for Investment and Development (“EBID”), Nexent Bank N.V. (formerly known as Credit Europe Bank N.V.) and Zenith Bank (through its UK, Paris and Nigeria offices).
The project is structured as an EPC+F (Engineering, Procurement, Construction + Financing) contract awarded to Hitech Construction Company, one of Nigeria’s leading infrastructure firms. This structure aims at a strategic partnership between the Government and the private sector, seamlessly aligning technical execution with financing solutions. It enables fast-track project delivery while unlocking and maximizing private sector appetite for investment in the country’s priority infrastructure. Construction of Phase 1 Section 1 is already over 70% complete.
The highway, constructed using Continuously Reinforced Concrete Pavement (CRCP), reflects a commitment to long-term resilience and efficiency. Engineered for a minimum lifespan of 50 years with minimal maintenance, it offers outstanding durability and cost-effectiveness. The project’s design and implementation have been shaped by comprehensive technical, legal, and environmental and social assessments, ensuring alignment with the highest international standards.
The Lagos-Calabar Coastal Highway will serve as a vital trade and logistics corridor, enhancing regional integration, tourism, reducing transport costs, and creating jobs. A tolling strategy is currently being finalised to ensure the project’s operational and financial sustainability. These mechanisms will support a self-sustaining, concession-backed framework, helping to ensure long-term viability. Financing for subsequent phases is already being structured, with strong interest from regional and international investors.
This landmark transaction reflects the renewed engagement of international financial institutions with Nigeria, driven by bold macroeconomic reforms and a commitment to delivering bankable, transformative projects.
*Quotes*
Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria
*“This deal reflects the success of our macroeconomic reforms and the return of international capital to support Nigeria’s development. We are focused on financing infrastructure in ways that are sustainable, transparent, and catalytic—and this transaction is a model of that vision in action. The closing of this market defining financing is yet another testament to Mr President’s commitment to accelerate the participation of the private sector in infrastructure financing and development. It positions the country as being ready for a full transition to the design, development, financing as well as operations and management of critical public infrastructure through Public Private Partnerships. It signals to investors and private sector participants, the sophistication and maturity of the Nigerian market and commitment of the Government to sanctity of contracts and innovative structures to fund critical national infrastructure that will deliver sustained and inclusive growth.”*
Hon. David Umahi, Minister of Works, Federal Republic of Nigeria
*“This transaction is a vote of confidence in Nigeria’s economic reform agenda. The Lagos-Calabar Highway is a strategic national asset, and this financing sets a strong precedent for future public-private infrastructure partnerships.”*
Dany Abboud, Managing Director, Hitech Construction Company Limited
*“We are proud to deliver this historic project. With over 70% of Phase 1 Section 1 complete, we are showing that Nigerian engineering—backed by structured international finance—can meet global standards. The use of CRCP technology ensures unmatched durability and cost-efficiency.”*
Dr. Khalid Khalafalla, CEO, ICIEC
*“ICIEC is proud to join the Nigerian government and our co-financiers in realizing the Lagos–Calabar Coastal Highway Project. Through ICIEC’s sovereign risk coverage solution, we are unlocking vital infrastructure that will ease congestion, stimulate regional trade, and drive inclusive economic growth. This initiative will create employment opportunities, build local capacity, and bolster small and medium-sized enterprises, demonstrating our steadfast commitment to sustainable development, multimodal connectivity, and prosperity for communities across West Africa.”*
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun has reaffirmed Nigeria’s commitment to bold reforms that are restoring stability, strengthening investor confidence, and laying the foundation for inclusive growth.
Speaking at the 31st Nigerian Economic Summit in Abuja, HM Edun said the country is at *a pivotal moment* where decisive action will determine its economic future. He pointed to significant progress already achieved; including stabilisation of the naira, improved foreign exchange management, higher federal allocations, and early signs of easing inflation.
The Minister highlighted four priorities to sustain momentum: reforming fiscal policy, raising Nigeria’s tax-to-GDP ratio through automation and technology, curbing inflation, and unlocking private sector investment. With tax revenues at just 13% of GDP compared to 50–60% in peer economies, he stressed the urgency of widening the base to fund critical infrastructure and social programmes.
On social investments, the Minister announced that the Direct Benefit Transfer Scheme has already reached over 8 million Nigerians, with a target of 15 million households by year-end. Every beneficiary, he added is biometrically identified and digitally paid, ensuring transparency and impact.
Reiterating the central role of private enterprise, he noted that reforms are creating a more competitive climate for investment in energy, agriculture, transport, and digital infrastructure. *Nigeria’s demographic advantage means our youth will form a major part of the global workforce by 2050,* Edun said. *Our task is to equip them to seize that opportunity,* he added further
The Minister underscored President Bola Ahmed Tinubu’s commitment to policies that deliver fiscal stability, attract investment, and ensure prosperity is broadly shared.
The Federal Government has taken a significant step towards realizing its green growth agenda with the $100 million Orteva Carbon Project, a landmark initiative aimed at unlocking climate finance, generating carbon credits, and accelerating the country’s transition to a sustainable economy.
This was disclosed by the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun today in his office in Abuja when he received a delegation from Orteva, in partnership with the Delta State Government and Eighth Versa, for strategic discussions on the project.
Commending the project, the Minister described it as *a timely intervention fully aligned with President Bola Ahmed Tinubu’s vision of green growth and sustainable economic transformation.*
He stressed that initiatives of this scale are central to Nigeria’s Energy Transition Plan and will diversify revenue streams beyond oil, attract foreign exchange, and create jobs.
With components ranging from mangrove conservation to biochar production, the project is expected to generate between $350 million and $2.8 billion in carbon credit revenue, positioning Nigeria as a leading hub for credible carbon trading in Africa.
HM Edun assured that *the Federal Government is committed to building a transparent carbon market framework with strong governance and pricing mechanisms,* He added *For the private sector, this represents an opportunity to invest in projects that protect the environment while delivering long-term economic returns.*
The Federal Ministry of Finance reaffirmed its readiness to provide the policy, fiscal, and credit-enhancement structures needed to attract both domestic and international financing. The Orteva Carbon Project signals Nigeria’s new economic frontier, where sustainability and profitability converge to power inclusive growth.
The 31st Nigerian Economic Summit held in Abuja today, brought together national leaders, industry captains, and development partners to chart a path towards a trillion-dollar economy, with the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, in attendance.
With a focus on bold reforms and inclusive growth, the summit highlighted key initiatives and strategies for achieving sustainable economic development.
Declaring the event open, President Bola Ahmed Tinubu underscored the administration’s commitment to bold reforms that will unlock growth, expand jobs, and ensure shared prosperity.
Represented by the Vice President, Kashim Shettima, the President noted that with interventions such as a ₦200 billion fund for MSMEs and manufacturers, new fiscal measures to grow domestic revenue, and nationwide infrastructure projects, the government signaled its focus on creating an investor-friendly environment where the private sector can thrive as the engine of inclusive transformation.
The theme of this year’s summit, *The Reform Imperative: Building a Prosperous and Inclusive Nigeria by 2030*, reflects the urgency of consolidating recent stabilization gains into a trillion-dollar economy that works for all Nigerians.
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