The Federal Government of Nigeria has successfully secured a $747 million loan to finance the first phase, section one, of the Lagos-Calabar Highway project.
This critical stretch of the highway runs from Victoria Island to Eleko Village and represents a major milestone in the country’s infrastructure development agenda.
The loan, arranged by Deutsche Bank, is the largest syndicated road infrastructure financing ever secured in Nigeria, underscoring a strong vote of confidence by global investors in Nigeria’s ongoing economic reforms and its commitment to expanding and modernizing its infrastructure network.
Deutsche Bank served as the Global Coordinator, Initial Mandated Lead Arranger, and Bookrunner for the loan, working alongside a consortium of regional and international lenders.
These include First Abu Dhabi Bank, which also acts as Agent and Intercreditor Agent, the African Export-Import Bank (Afrexim), Abu Dhabi Exports Office (ADEX), the ECOWAS Bank for Investment and Development (EBID), Nexent Bank N.V., and Zenith Bank through its offices in the UK, Paris, and Nigeria.
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) provided partial political and commercial risk insurance, adding a layer of security that helped attract this significant financing package.
This diverse syndicate of financiers reflects a broad-based international support for Nigeria’s infrastructure projects and highlights the growing maturity and sophistication of the country’s financial markets.
The highway project is structured as an EPC+F contract — Engineering, Procurement, Construction plus Financing — awarded to Hitech Construction Company, one of Nigeria’s leading infrastructure firms.
This arrangement creates a strategic partnership between the government and the private sector, ensuring that technical execution is closely aligned with financing solutions.
Such a structure is designed to fast-track project delivery, maximize private sector investment appetite, and promote efficiency and accountability throughout the construction process.
The involvement of a reputable construction firm alongside a robust financing framework demonstrates Nigeria’s commitment to delivering high-quality infrastructure that meets international standards.
Construction on Phase 1, Section 1 of the highway is already over 70% complete, signaling significant progress toward the project’s completion.
The highway is being built using Continuously Reinforced Concrete Pavement (CRCP), a technology chosen for its durability and cost-effectiveness.
This engineering approach ensures that the road will have a minimum lifespan of 50 years with minimal maintenance requirements, providing long-term resilience and efficiency.
The design and implementation of the project have been guided by comprehensive technical, legal, environmental, and social assessments to ensure compliance with the highest international standards.
This holistic approach reflects Nigeria’s commitment to sustainable infrastructure development that takes into account environmental protection and social impact.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the loan agreement as a clear demonstration of the success of Nigeria’s macroeconomic reforms and the renewed confidence of international capital in the country’s development trajectory.
He emphasized that the financing model is sustainable, transparent, and catalytic, serving as a blueprint for future infrastructure projects.
According to Minister Edun, this deal marks a significant step toward accelerating private sector participation in infrastructure financing and development, positioning Nigeria for a full transition to public-private partnerships in the design, development, financing, operation, and management of critical public infrastructure.
The government’s commitment to contract sanctity and innovative funding structures sends a strong signal to investors about the maturity and readiness of Nigeria’s market for large-scale infrastructure investments.
This $747 million loan will not only facilitate the timely completion of the Lagos-Calabar Highway but also contribute significantly to Nigeria’s broader economic growth and regional integration.
The highway is a vital transport corridor that will improve connectivity, reduce travel time, and enhance trade and commerce between Lagos and the southeastern parts of the country.
By leveraging private sector expertise and international finance, Nigeria is setting a precedent for how large infrastructure projects can be delivered efficiently and sustainably.
This project is expected to stimulate job creation, boost local economies along the route, and improve the overall quality of life for millions of Nigerians who depend on reliable road networks for their daily activities.
In summary, the successful securing of this loan represents a landmark achievement for Nigeria’s infrastructure sector.
It highlights the country’s ability to attract significant international investment through sound economic policies and strategic partnerships.
The Lagos-Calabar Highway project, with its advanced engineering, robust financing, and strong government backing, stands as a model for future infrastructure development in Nigeria and across Africa.
As the project progresses toward completion, it promises to deliver lasting economic and social benefits, reinforcing Nigeria’s position as a growing economic powerhouse on the continent.
