The Federal Government of Nigeria has secured a $747 million syndicated loan to kick-start the construction of the ambitious Lagos-Calabar Coastal Highway, one of the country’s most significant infrastructure projects in decades.
The loan, according to a report by Reuters quoting the Ministry of Finance, will be used to finance the first phase of the 700-kilometre (435-mile) superhighway, designed to link Lagos in the South-West to Calabar in the South-South region.
Once completed, the highway is expected to boost trade, tourism, connectivity, and regional development along Nigeria’s coastal corridor.
Finance ministry spokesman, Mohammad Manga, disclosed on Thursday that the $747 million facility marks the largest road infrastructure loan ever secured in Nigeria.
Deutsche Bank acted as the global coordinator of the loan syndicate, which includes several prominent international and regional financial institutions, such as First Abu Dhabi Bank, African Export-Import Bank, Abu Dhabi Exports Office, ECOWAS Bank for Investment and Development, and Zenith Bank.
The first segment of the highway to be constructed under this financing arrangement spans 47.47 kilometres.
This initial section is expected to serve as a critical proof of concept for the broader project, which is projected to cost an estimated $11 billion in total and take approximately eight years to complete.
Officials say the project will include bridges, interchanges, and service infrastructure, and it is being developed under a Public-Private Partnership (PPP) model.
The government believes the project will stimulate economic growth, create jobs, and enhance Nigeria’s competitiveness as a regional logistics and trade hub.
