President Bola Tinubu on Friday applauded the closure of $1.126bn in financing for Phase 1, Section 2 of the Lagos–Calabar Coastal Highway, describing it as a major achievement that guarantees the continuation of one of the “Africa’s most ambitious infrastructure projects.”
The financing, fully underwritten by First Abu Dhabi Bank and the African Export-Import Bank with partial risk mitigation from the Islamic Corporation for the Insurance of Investment and Export Credit, brings the total secured funding for the first phase to $1.873bn.
In a statement by his Special Adviser on Information and Strategy, Bayo Onanuga, Tinubu praised the Federal Ministries of Finance and Works, along with the Debt Management Office, for working collaboratively to close the transaction signed on December 19, 2025.
“This is a major achievement, and closing this transaction means the Lagos-Calabar Coastal Highway will continue unimpeded.
“Our administration will continue to explore available funding opportunities to execute critical economic and priority infrastructural projects across the country,” the President stated.
Phase 1, Section 2 covers approximately 55.7 kilometres, connecting Eleko in Lekki to Ode-Omi, key economic corridors that the Presidency says will significantly enhance national trade efficiency and logistics connectivity.
The financing follows the earlier closing of $747m for Phase 1, Section 1 on July 9, 2025, demonstrating what the Presidency described as “the scalability and bankability” of the 700-kilometre highway project.
Finance Minister and Coordinating Minister of the Economy, Wale Edun, described the December 19 signing as “a defining moment in Nigeria’s infrastructure journey.”
“The signing on December 19, 2025, of USD 1.126bn financing for Phase one (section two) of the Lagos-Calabar Coastal Road marks a defining moment in Nigeria’s infrastructure journey, following the successful closing of the USD 747 million financing for Phase one section one on July 9, 2025.
“Collectively, these landmark transactions firmly establish the Lagos-Calabar Coastal Highway as one of the defining flagship projects of President Bola Tinubu’s Renewed Hope agenda, embodying the administration’s commitment to bold, transformational infrastructure,” he added.
Edun emphasised that the financing represents “for the first time, a truly underwritten transaction of this magnitude for a Nigerian road infrastructure project.”
“The facility was fully underwritten by First Abu Dhabi Bank ($626m) and Afreximbank ($500m), with partial coverage provided by ICIEC, making it the largest ICIEC-supported transaction since the institution’s creation,” the minister disclosed.
The ICIEC participation marked the institution’s largest transaction since Nigeria’s recent institutional and regulatory reforms, reflecting what officials described as “growing confidence in Nigeria’s reformed investment climate and its capacity to deliver infrastructure.”
The Minister of Works, David Umahi, temporarily opened Section 1 to traffic on December 12, 2025.
The 47-kilometre stretch, running from Ahmadu Bello Way junction to Eleko village junction in Lagos, was made available to commuters ahead of the Christmas festivities.
The Lagos-Calabar Coastal Highway, first proposed in the 1970s, gained traction under Presidents Goodluck Jonathan and Muhammadu Buhari before President Tinubu revived it in February 2024.
The 700-kilometre project is designed to connect Lagos through Ogun, Ondo, Edo, Delta, Bayelsa, Rivers and Akwa Ibom states before terminating in Calabar, Cross River State.
Two additional spurs will connect northern states, a 1,000km Sokoto-Badagry project and a 461km trans-Saharan route through Enugu, Abakaliki, Ogoja to Cameroon.
With estimated costs between $11bn and $13bn, the project has attracted significant controversy since construction began in March 2024.
On April 30, 2024, bulldozers demolished kiosks, restaurants and beachside businesses at the Oniru waterfront in Lagos, sparking widespread outrage.
Property owners accused the government of inadequate compensation and short notice periods.
Paul Onwuanibe, owner of a $200 million beach resort that was 70 percent demolished, told international media he received only seven days’ notice in late March 2024.
In June 2025, a coalition of investors under the Foreign Investors Network of Nigeria initiated a $250m lawsuit against the Federal Government, alleging constitutional violations and procedural breaches.
The suit claims the government rerouted a highway section through an 18.8-hectare estate in Okun-Ajah without notifying lawful owners.
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