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FG, Global Lenders Rally Behind President Tinubu’s Renewed Hope Agenda
By Kingsley Benson
In what government officials are calling a defining moment for infrastructure financing in Nigeria, the federal government has secured a $747 million syndicated loan to fund the first stretch of the Lagos-Calabar Coastal Highway- one of the most ambitious road projects in West Africa.
According to Mr. Mohammad Manga, from the Ministry of Finance’s Directorate of Information, the funding package, spearheaded by Deutsche Bank and backed by a coalition of international and regional financial institutions, will finance Phase 1, Section 1 of the highway – covering a 47-kilometre stretch from Victoria Island to Eleko Village in Lagos.
The project is part of President Bola Ahmed Tinubu’s Renewed Hope Infrastructure Development Agenda and is expected to significantly improve regional logistics, tourism, and trade integration along Nigeria’s southern corridor.
Global Support for a National Flagship
According to the statement, Deutsche Bank served as Global Coordinator, Lead Arranger, and Bookrunner. The funding syndicate also includes First Abu Dhabi Bank, the African Export-Import Bank, ECOWAS Bank for Investment and Development, Nexent Bank N.V. (formerly Credit Europe Bank), and Nigeria’s own Zenith Bank. The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is providing partial political and commercial risk coverage, giving the deal a globally credible risk profile.
“This is a market-defining transaction. It reflects the return of international capital to support Nigeria’s development and affirms confidence in the President Tinubu administration’s macroeconomic reforms,” said Mr. Wale Edun, Honourable Minister of Finance and Coordinating Minister of the Economy.
More Than a Road – A National Statement
The Lagos-Calabar Coastal Highway is being constructed using Continuously Reinforced Concrete Pavement (CRCP), a high-durability technology with a projected lifespan of 50 years and minimal maintenance requirements. The contractor, Hitech Construction Company Limited, has already completed over 70 percent of the first section, with works progressing rapidly.
“We are proud to deliver this historic project to Nigerians,” said Dany Abboud, Managing Director of Hitech. “It is a bold demonstration that Nigerian infrastructure, when backed by international finance and technical excellence, can meet global standards.”
The contract was awarded under an Engineering, Procurement, Construction and Financing (EPC+F) structure – a model designed to fast-track execution while reducing fiscal strain on the government.
Public-Private Synergy and Investor Signals
Beyond the physical construction, the financing agreement is also seen as a breakthrough in Nigeria’s infrastructure development model, shifting toward public-private partnerships (PPP) and innovative risk-sharing mechanisms.
“This transaction signals that Nigeria is open for business,” said Mr. Edun. “We are prioritising sustainable, transparent, and catalytic financing frameworks. The private sector’s role in infrastructure is no longer optional – it is central.”
Honourable Minister of Works, Mr. David Umahi, echoed that sentiment, calling the loan deal a strategic vote of confidence in the administration’s reform agenda. “This is not just about road construction; it is a platform for future infrastructure partnerships,” he said.
A Development Catalyst for West Africa
From the perspective of development finance institutions, the highway project is more than an economic asset – it is a regional connector. Dr. Khalid Khalafalla, CEO of ICIEC, noted that the highway will unlock trade routes, decongest urban centers, and empower communities.
“This project creates jobs, stimulates SMEs, and sets the groundwork for regional prosperity,” Dr. Khalafalla said. “We are not just investing in concrete and steel – we’re investing in lives and livelihoods.”
Tolling, Replication, and Expansion
With the initial 47km stretch nearing completion, the federal government is developing a tolling strategy to ensure the highway’s long-term financial sustainability. Officials have hinted that future phases of the 700km highway – eventually connecting Lagos to Calabar through several coastal states – will also explore blended financing models, including PPPs, development grants, and sovereign guarantees.
“The Lagos-Calabar Coastal Highway is a project of national importance,” the statement stated. “With this financing, we have crossed one of the most challenging hurdles. Now, it is full speed ahead.”
