The Federal Government has secured $1.26 billion in financing from Abu Dhabi to advance construction of the Lagos–Calabar Coastal Highway.
The Presidency announced the development on Friday, confirming that the funding will support Phase One, Section Two of the project.
President Bola Tinubu commended the Ministries of Finance and Works, as well as the Debt Management Office, for closing the deal.
According to Tinubu, the transaction ensures that work on the highway will continue without interruption.
He added that his administration will keep exploring innovative financing options for critical infrastructure nationwide.
Loan Agreement Signed December 19
Meanwhile, Finance Minister Wale Edun disclosed that the loan agreement was signed on December 19, 2025.
He assured Nigerians that the government will deploy the funds responsibly to ensure timely delivery.
In addition, Edun noted that the deal follows the earlier $747 million financing secured in July 2025.
That earlier facility funded Phase One, Section One of the coastal highway.
Abu Dhabi Banks Lead Historic Financing
According to the minister, First Abu Dhabi Bank provided $262 million, while Afreximbank committed $500 million to the facility.
Furthermore, the deal received partial risk coverage from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
As a result, the transaction ranks as the largest ICIEC-backed deal since the institution’s establishment.
Edun said the structure reflects growing confidence in Nigeria’s infrastructure financing framework.
Scope of Phase One, Section Two
Phase One, Section Two of the Lagos–Calabar Coastal Highway spans 55.7 kilometres, linking Eleko in Lekki to Ode-Omi.
For the transaction, SkyKapital acted as Lead Financial Adviser, while Earth Active UK provided environmental and social advisory services.
Hogan Lovells handled international legal matters, while Templars served as Nigerian legal counsel.
In addition, SkyKapital conducted a value-for-money assessment, which GIBB Holdings independently verified.
Project Timeline and Milestones
Earlier, Minister of Works David Umahi said Phase One of the highway would reach completion by May 29, 2026.
Subsequently, President Tinubu inaugurated the completed 30km Section One on May 31, 2025.
Overall, the Lagos–Calabar Coastal Highway remains a flagship infrastructure project of the Tinubu administration.
