By Jemimah Wellington, JKNewsMedia Correspondent
FRESH FINANCING secured for a major section of the Lagos Calabar Coastal Highway (LCCH) has been hailed by President Bola Tinubu as a significant milestone in the delivery of what he described as Africa’s most ambitious and transformative infrastructure projects.
The President praised the Federal Ministry of Finance for successfully closing $1.126 billion in financing for the execution of Phase One Section Two of the highway.
He commended the Finance Ministry and Works alongside the Debt Management Office (DMO) for their collaboration on the transaction, stating that the Federal Government would continue to explore creative funding options to deliver critical projects nationwide.
“This is a major achievement, and closing this transaction means the LCCH will continue unimpeded. Our administration will continue to explore available funding opportunities to execute critical economic and priority infrastructural projects across the country,” President Tinubu said.
Phase One Section Two of the project spans about 55.7 kilometres, linking Eleko in Lekki to Ode Omi adding that the corridor was described as a key economic route with the capacity to significantly enhance national trade efficiency and logistics connectivity.
The financing followed the earlier closing of $747 million for Phase One Section One and was presented as evidence of the scalability and bankability of the Lagos Calabar Coastal Highway.
He disclosed that the funding package was fully underwritten by First Abu Dhabi Bank and Afreximbank, while partial risk mitigation support was provided by the Islamic Corporation for the Insurance of Investment and Export Credit.
The President also described the transaction as the largest supported by the institution since Nigeria’s institutional and regulatory reforms, reflecting increased confidence in the country’s reformed investment climate and its capacity to deliver large scale infrastructure.
SkyKapital served as Lead Financial Advisor on the transaction, coordinating the structuring lender engagement and execution.
Environmental and Social advisory services were provided by Earth Active of the United Kingdom, ensuring alignment with IFC Performance Standards the Equator Principles and international environmental social and governance best practices.
Legal advisory services were led by Hogan Lovells as International Counsel and Templars as Nigerian Legal Counsel.
Describing the transaction as a defining moment, the Finance and Coordinating Minister of the Economy, Wale Edun, said the funds would be deployed responsibly and judiciously to deliver the project within agreed timelines as noted in a statement signed by Bayo Onanuga Special Adviser to the President on Information and Strategy and published on his X handle on December 26 2025.
“The signing on December 19, 2025, of $1.126 billion financing for Phase One Section Two of the LCCR marks a defining moment in Nigeria’s infrastructure journey, following the successful closing of the $747 million financing for Phase One Section One on July 9, 2025,” Edun said.
He added that the transactions collectively establish the LCCR as one of the defining flagship projects of President Bola Ahmed Tinubu’s Renewed Hope agenda and demonstrate the administration’s commitment to bold and transformational infrastructure.
“This financing is particularly notable as it represents for the first time a truly underwritten transaction of this magnitude for a Nigerian road infrastructure project,” Edun said.
He also reiterated that the facility was fully underwritten by First Abu Dhabi Bank with $626 million and Afreximbank with $500 million, with partial coverage provided by the Islamic Corporation for the Insurance of Investment and Export Credit.
Construction work on the highway is being executed by Hitech Construction Company Limited adding that the company’s rapid on site progress and early opening of key road sections have earned commendation from lenders for engineering excellence operational discipline and execution speed.
Edun then stressed that in line with the FG’s commitment to transparency and fiscal discipline, a comprehensive Value for Money assessment was conducted by the Federal Ministry of Works in coordination with SkyKapital and it was independently reviewed as confirmed by GIBB.
