The Federal Government has obtained approximately $1.2 billion in financing from the United Arab Emirates to support ongoing construction of the Lagos–Calabar Coastal Highway, reinforcing funding for one of Nigeria’s most ambitious infrastructure projects.
The Presidency disclosed the development in a statement on Friday, noting that the facility will fund a 56-kilometre segment of the coastal expressway. Bloomberg also reported the transaction.
The Lagos–Calabar Coastal Highway is a flagship road project of the Tinubu administration, designed to run along Nigeria’s Atlantic coastline and connect key commercial and economic hubs. When fully completed, the road is expected to stretch about 700 kilometres.
President Bola Tinubu, commenting on the financing arrangement, said the deal guarantees steady progress on the project as the government intensifies efforts to bridge Nigeria’s infrastructure deficit.
“This is a major milestone. Closing this transaction ensures that construction of the Lagos–Calabar Coastal Highway continues without disruption,” the President said.
He added that the Federal Government would continue to explore innovative and diversified financing options to deliver large-scale infrastructure across the country.
Background and financing structure
The latest funding builds on earlier arrangements for the highway. In July, Nigeria secured an additional $747 million for another phase of the project, highlighting its phased construction and financing model.
The current deal was coordinated by Deutsche Bank, which served as Global Coordinator and Lead Arranger, working alongside a consortium of international and regional lenders. The syndicate includes First Abu Dhabi Bank, Afreximbank, the ECOWAS Bank for Investment and Development (EBID), Nexent Bank N.V., and Zenith Bank.
First Abu Dhabi Bank fully underwrote the loan, while risk coverage was provided by the Islamic Corporation for the Insurance of Investment and Export Credit, reflecting increasing Gulf participation in Nigeria’s infrastructure financing.
Project progress and outlook
Managing Director of Hitech Construction, Dany Abboud, confirmed that more than 70 per cent of the funded section has already been completed. He noted that the use of Continuously Reinforced Concrete Pavement (CRCP) technology would enhance durability and long-term cost efficiency.
The Lagos–Calabar Coastal Highway is expected to significantly improve logistics, trade, tourism, and regional integration across southern Nigeria. Analysts say the latest UAE-backed facility strengthens funding certainty for the project and signals sustained international confidence in Nigeria’s infrastructure programme.
If delivered as planned, the highway could reduce travel time, stimulate coastal economic activity, and improve connectivity among southern states—key objectives of the Federal Government’s development agenda.
