The Federal Government has secured a $747 million syndicated loan to finance Phase 1 Section 1 of the Lagos-Calabar Coastal Highway, a major infrastructure project under the Renewed Hope Agenda.

The loan, announced in a press statement by the Ministry of Finance on Wednesday, is aimed at completing the first section of the highway, which spans 47 kilometres from Victoria Island to Eleko Village in Lagos State.

According to the statement by the Director of Information and Public Relations at the Ministry of Finance, Mohammad Manga, this stretch is already more than 70% completed and is expected to play a crucial role in unlocking trade, improving connectivity, and enhancing logistics across the region.

This syndicated loan represents the first of its magnitude for road infrastructure in Nigeria.

In addition to Deutsche Bank, the loan syndicate includes prominent institutions such as First Abu Dhabi Bank, the African Export-Import Bank (Afreximbank), the ECOWAS Bank for Investment and Development (EBID), Nexent Bank N.V. (formerly Credit Europe Bank N.V.), and Nigeria’s own Zenith Bank.

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

The road will be constructed using Continuously Reinforced Concrete Pavement (CRCP), a technology known for its durability and cost-effectiveness. According to the Ministry of Finance, this technique ensures the road will have a lifespan of at least 50 years with minimal maintenance, making it a long-term asset for national development.

The Lagos-Calabar Coastal Highway is one of the signature projects under the Tinubu administration’s infrastructure blueprint and is expected to improve regional integration, reduce transportation costs for goods and passengers, and generate employment opportunities both during and after construction.

Source: Nairametrics