The Federal Government of Nigeria has secured approximately $1.2 billion in financing from the United Arab Emirates (UAE) to advance construction of the Lagos–Calabar Coastal Highway, one of the country’s most ambitious infrastructure projects. The loan agreement was announced by the Presidency on Friday and is aimed at funding a 56-kilometre section of the highway, reinforcing momentum on this flagship transport corridor.
The coastal highway, ultimately expected to stretch about 700 kilometres along Nigeria’s Atlantic coastline from Lagos to Calabar, is envisioned to dramatically improve connectivity between southern states and boost trade, tourism, logistics, and economic activity across the region.
President Bola Ahmed Tinubu, in a statement tied to the financing announcement, described the loan as a “major milestone” that will help ensure steady progress on the project without disruption, reinforcing the government’s infrastructure development push.
The deal is part of a broader phased financing structure for the highway; earlier this year, Nigeria also secured $747 million for another section of the project, highlighting sustained international interest and confidence in its delivery.
Led by Deutsche Bank as Global Coordinator and Lead Arranger, the financing syndicate includes First Abu Dhabi Bank, Afreximbank, the ECOWAS Bank for Investment and Development (EBID), Nexent Bank N.V., and Zenith Bank, while risk mitigation is provided by the Islamic Corporation for the Insurance of Investment and Export Credit.
If completed as planned, the Lagos–Calabar Coastal Highway will significantly reduce travel time between major coastal cities, stimulate economic growth along the corridor, and enhance regional integration, aligning with the Federal Government’s broader infrastructure development agenda.
