Latest Development
Project Details
Project TypeRoad / Highway Infrastructure
Project OwnerFederal Government of Nigeria
Project SponsorFederal Government of Nigeria
Main ContractorHitech Construction Company Limited
Project DeveloperFederal Ministry of Works
Financing InstitutionFirst Abu Dhabi Bank (FAB) African Export-Import Bank (Afreximbank)
Current PhaseUnder construction
Funding StatusFully Funded
Key Issues / Risks
Execution risk remains significant given the scale of the project, the need to coordinate construction, financing, environmental and social requirements, and the project's dependence on long-term infrastructure performance and economic activity to support its financing structure. Environmental concerns, including flooding and drainage impacts, remain an active stakeholder issue requiring continued mitigation and monitoring.
Latest Development (Detail)
Section 1 (47.47km) nearing completion and was temporarily opened to traffic in December 2025. Section 1 from Victoria Island to Eleko (7.47km) completed; Section 2 (50km toward Ogun border) at 70% completion; Sections 3A and 3B at 30%; Akwa Ibom section (180km) construction ongoing.
What Happens Next
Continued implementation of the funded highway sections and further development of the financing structure for subsequent phases, with future procurement and contracting opportunities to be monitored as they are formally announced.
Commercial Opportunity
The project's large-scale financing and continued development create opportunities across the infrastructure value chain. Immediate commercial relevance is strongest for financial institutions and infrastructure investors monitoring financing for subsequent phases, while construction and engineering companies, material suppliers, equipment providers, logistics operators and project-support service providers can position for future procurement and contracting requirements. The financing structure also creates potential opportunities for banks, export credit agencies, insurers and political-risk providers involved in structuring and supporting large infrastructure transactions.
Stakeholder Intelligence
Key Organizations / Companies InvolvedFederal Government of Nigeria; Federal Ministry of Works; Federal Ministry of Finance; Hitech Construction Company Limited; Deutsche Bank; First Abu Dhabi Bank; African Export-Import Bank (Afreximbank); Abu Dhabi Exports Office (ADEX); ECOWAS Bank for Investment and Development (EBID); Nexent Bank N.V.; Zenith Bank; Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
Note: The $1.126 billion Phase 1 Section 2 financing was underwritten by FAB and Afreximbank, with ICIEC providing risk coverage; the earlier $747 million Phase 1 Section 1 financing involved a different financing structure.
Capital & Financing Intelligence
Funding / Amount Committed$ $1.126 billion
Funding SourcePrimary: First Abu Dhabi Bank (FAB) and African Export-Import Bank (Afreximbank) Secondary: International commercial bank financing / syndicated loan ICIEC (credit/risk insurance support)
Procurement & Contract Outlook
Procurement / Contract OpportunityNo specific new open procurement opportunity has been verified at the time of this record. However, future phases and ongoing implementation may generate procurement requirements across construction materials, engineering, heavy equipment, logistics and project-support services. These should be tracked separately and upgraded to a confirmed procurement opportunity only when a verified tender or contract notice is published.
Expected Next MilestoneFinancing / Capital Structure for Subsequent Phases ()
Commercial Opportunity Intelligence
Financing / Capital OpportunityFinancing for subsequent phases of the Lagos–Calabar Coastal Highway is being structured, creating potential opportunities for international and regional lenders, infrastructure investors and financial institutions able to participate in large-scale project finance, syndicated lending and risk-mitigation structures. The project has already demonstrated the ability to mobilise international capital, including the $1.126 billion financing package for Phase 1, Section 2 and ICIEC-backed financing support.
Opportunity SignalThe project's financing structure is a signal that subsequent sections of the Lagos–Calabar Coastal Highway may generate further opportunities for lenders, infrastructure investors and financial institutions. The combination of commercial bank financing and political-risk insurance demonstrates a financing model that could be relevant to institutions assessing large Nigerian infrastructure transactions.
Commercial ReadinessApproaching
Historical Intelligence
10 July 2025Nigeria secured a $747 million Deutsche Bank-led syndicated loan to finance Phase 1, Section 1 of the Lagos–Calabar Coastal Highway, covering approximately 47.47 kmReutersSource → 26 December 2025Nigeria announced financial close of $1.126 billion in financing for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, covering approximately 55.7 km from Eleko in Lekki to Ode-OmiState House, AbujaSource → 19 June 2026ICIEC announced $626 million in insured support for financing associated with the Lagos–Calabar Coastal Highway, backed by a Non-Honouring of Sovereign Financial Obligations policy in favour of First Abu Dhabi Bank, with the Federal Ministry of Finance as borrowerICIECSource → 7 July 2026Federal Ministry of Works reported continued implementation and environmental mitigation activities around the Lagos–Calabar Coastal Highway, including drainage, dredging and right-of-way measuresFederal Ministry of WorksSource → Source & Verification Trail
Last VerifiedJuly 26, 2026
Source(s)Federal Ministry of Finance, Nigeria
The State House, Abuja
ICIEC / Islamic Development Bank Group
Reuters
Source Date10 July 2025 — $747 million Phase 1 Section 1 financing 26 December 2025 — $1.126 billion Phase 1 Section 2 financial close 19 June 2026 — ICIEC $626 million financing support announcement 7 July 2026 — Federal Ministry of Works environmental and project update