The Federal Government has clinched a $747 million loan facility to finance Phase 1, Section 1 of the Lagos–Calabar Coastal Highway, the Ministry of Finance announced yesterday. Deutsche Bank acted as lead arranger for the transaction, which is expected to unlock critical funding for one of Nigeria’s most strategic infrastructure projects.
Phase 1, Section 1 spans approximately 47.7 kilometres, running from Ahmadu Bello Way in Lagos State to Eleko Junction, and represents the first segment of the planned 700 km highway stretching along Nigeria’s southern coast . Work on this section began in March 2024 under a contract awarded to Hitech Construction Company Limited, with completion initially targeted for mid-2025.
According to the Minister of Finance, the newly secured facility will cover earthworks, pavement, drainage, bridge construction and ancillary works essential to bring the road to operational standards. While the full terms of the loan remain confidential, officials indicated it carries a multi-year tenor and is structured to dovetail with other financing secured for the project.
“The successful arrangement of this facility marks a major milestone in our efforts to modernize Nigeria’s transport network,” said the Honourable Minister. “By leveraging global capital markets, we are able to expedite development, reduce reliance on budgetary allocations, and deliver lasting economic benefits for our citizens.”
In addition to the Deutsche Bank financing, the ECOWAS Bank for Investment and Development (EBID) earlier approved a $100 million loan to support the same stretch of highway, underscoring the project’s regional importance . Together, these facilities provide more than 70 percent of the funding required to complete Section 1, with the balance expected from the Federal Government’s infrastructure budget.
Once completed, the Lagos–Calabar Coastal Highway will link nine coastal states and improve access to major seaports, agricultural zones and industrial hubs. Government analysts estimate the corridor could reduce transit times by up to 60 percent and catalyze more than $10 billion in additional economic activity over the next decade.
Work on Phase 1, Section 1 is slated to wrap up by January 2026, with commissioning scheduled shortly thereafter. Subsequent phases will extend the route eastward through Ogun, Ondo, Delta, Bayelsa, Rivers, Akwa Ibom and Cross River states, culminating in Calabar.
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