President says funding deal secures uninterrupted work as Phase 1, Section 2 spans 55.7km economic corridor
President Bola Tinubu has applauded the successful completion of a $1.26 billion financing agreement for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing the development as a significant boost to Nigeria’s infrastructure expansion efforts.
In a statement released on Friday by his Special Adviser on Information and Strategy, Bayo Onanuga, the President commended the Federal Ministry of Finance, the Ministry of Works, and the Debt Management Office for working together to secure the funding.
Tinubu noted that the successful closure of the deal would guarantee continuous construction work on the coastal highway, which he described as a central pillar of his administration’s economic and infrastructure agenda.
According to the President, the financing milestone reflects his government’s commitment to deploying innovative funding mechanisms to deliver large-scale national projects.
“This is a major achievement, and the completion of this transaction ensures that work on the Lagos–Calabar Coastal Highway will proceed without interruption,” Tinubu said.
Project Expected to Transform Trade and Connectivity
Phase 1, Section 2 of the highway covers approximately 55.7 kilometres, stretching from Eleko in Lekki to Ode-Omi, two strategic locations expected to strengthen trade routes, logistics efficiency, and economic activity along the nation’s coastal corridor.
Onanuga quoted the President as describing the Lagos–Calabar Coastal Highway as one of the most impactful infrastructure projects of his administration, adding that its full completion would change public perception of the initiative.
He also revealed that the new financing builds on an earlier $747 million secured for Phase 1, Section 1, further demonstrating the project’s scale and appeal to global financiers.
International Backing Signals Investor Confidence
The $1.26bn facility was fully underwritten by First Abu Dhabi Bank and Afreximbank, with additional partial risk mitigation provided by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
The transaction represents ICIEC’s largest deal since Nigeria implemented key institutional and regulatory reforms, a development widely seen as a strong vote of confidence in the country’s improving investment climate.
President Tinubu reaffirmed that his administration would continue to pursue funding opportunities to deliver critical economic and priority infrastructure projects across the country.
