The federal government has announced a $747 million loan facility secured to finance Phase 1 Section 1 of the Lagos-Calabar highway.
In a statement on Tuesday, the director of information and public relations at the ministry of finance, Mohammed Manga, said the loan was arranged by Deutsche Bank, stating it was the first syndicated road infrastructure loan of its size in the country.
“The facility is a strong signal of global investor confidence in the country’s reform trajectory and infrastructure pipeline,” the statement said.
It added, “Deutsche Bank acted as Global Coordinator, Initial Mandated Lead Arranger and Bookrunner and participated in the syndicate, alongside other regional and international lenders.”
The ministry further said the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) provided partial political and commercial risk insurance.
According to the ministry, the syndicate includes support from development finance institutions, export credit agencies and international commercial banks—notably First Abu Dhabi Bank, also acting as agent across all facilities and Intercreditor Agent, whose involvement underscores its strong and growing support for Nigeria.
“Other lenders involved are the African Export-Import Bank (“Afrexim”), the Abu Dhabi Exports Office (“ADEX”), the ECOWAS Bank for Investment and Development (“EBID”), Nexent Bank N.V. (formerly known as Credit Europe Bank N.V.) and Zenith Bank (through its UK, Paris and Nigeria offices). The project is structured as an EPC+F (Engineering, Procurement, Construction + Financing) contract awarded to Hitech Construction Company, one of Nigeria’s leading infrastructure firms,” the statement continued.
Noting that the loan structure aimed at a strategic partnership between the government and the private sector, seamlessly aligning technical execution with financing solutions, the ministry said the highway reflected a commitment to long-term resilience and efficiency.
The new loan announcement came months after the federal government awarded the coastal highway to Hitech Construction Company Ltd, a company owned by President Bola Tinubu’s ally Gilbert Chagoury, for over N15 trillion, drawing criticism from Nigerians over the procurement process.
Speaking on the deal, minister of works, Dave Umahi, said the mega project was awarded to Chagoury’s company based on its experience in concrete paving and its successful bid for subsequent project sections.
Umahi noted the contract’s procurement process followed due process, adding the company Chagoury had previously handled the reconstruction of the Oworonshoki-Apapa Road, which demonstrated its capability in concrete road construction.
