FG Secures $747 Million Loan for Lagos-Calabar Highway, Increasing Debt Profile

• The federal government of Nigeria initiated the Lagos-Calabar Coastal Highway project in 2024 to link nine states and two regions
• Since the commencement of the road project, several milestones have been recorded, but the road has been stalled by a lack of funds
• The federal government has now secured the largest-ever loan to be gotten for a road project, to finance a tiny portion of the road

Ruth Okwumbu-Imafidon, a journalist with Legit.ng, has over a decade of experience in business reporting across digital and mainstream media.

The Federal Government of Nigeria has secured a $747 million loan to complete the Lagos-Calabar Coastal Highway Project.

The Spokesperson from the Federal Ministry of Finance confirmed that this loan would be the first loan of this size taken for a road construction project.

This syndicated loan is led by Deutsche Bank and will be channeled into the construction of the first phase of the 700-kilometer highway.

Upon completion, the 700-kilometer (or 435-mile) highway is expected to link nine states between Lagos and Cross Rivers State.

Lagos-Calabar Highway to be completed in 8 years

The Lagos-Calabar Coastal Highway project was initiated under the current administration of President Bola Tinubu, and construction was awarded to Hitech Construction Company Limited.

The actual construction was reported to have started in March 2024, and some demolitions were carried out in the area.

Minister of Works, David Umahi, confirmed the federal government would pay N2.75 billion in compensation to property owners affected by the demolition.

He also promised that more compensation would be paid to property owners along the coastal corridor.

The project is expected to consume N15.6 trillion (over $11 billion), an expenditure that former President Olusegun Obasanjo described as wasteful and corrupt.

The government projects that the highway will be completed in eight years.

In the meantime, the Lagos State Government has suspended planning approvals along the Lagos-Calabar Coastal Road.

This is due to its disruption of ongoing urban development plans in the area, and the impact of the project on the Ode-Omi Action Area Plan and the Ibeju-Lekki Model City Plan.

Who gave the loan?

According to Reuters, the $747 million loan came from a syndicate led by Deutsche Bank.

Other institutions that make up the syndicate include the First Abu Dhabi Bank, African Export-Import Bank (Afreximbank), Abu Dhabi Exports Office, ECOWAS Bank for Investment and Development (EBID), and Zenith Bank.

The Ministry spokesperson, Manga, stated that the portion of the road to be financed with the loan will span 47.47 kilometers.

EBID approves $100 million for Lagos-Calabar Highway

In related news, the ECOWAS Bank for Investment and Development (EBID) approved funding of $100 million for the Lagos-Calabar Highway project.

This fund was approved as part of a broader financing package, and the EBID board of directors considered it one of several projects expected to boost economic and industrial growth on the continent.

Legit.ng reported that the approval came during the EBID 92nd ordinary session meeting held on 30 June 2025.

Source: Legit.ng