FG Secures Additional ₦1.2 Trillion Loan for Lagos-Calabar Coastal Highway Despite Earlier ₦15 Trillion Contract

The federal government has secured a $747 million (approximately ₦1.2 trillion) loan to fund Phase 1 Section 1 of the Lagos-Calabar Coastal Highway, months after awarding a controversial ₦15 trillion contract for the same project to Hitech Construction Company Ltd, owned by President Bola Tinubu’s ally, Gilbert Chagoury.

Announced on Tuesday, July 9, 2025, by the Ministry of Finance, the loan marks the country’s largest syndicated road infrastructure financing deal. According to a statement signed by the ministry’s director of information and public relations, Mohammed Manga, the facility was arranged by Deutsche Bank, which acted as Global Coordinator, Initial Mandated Lead Arranger and Bookrunner. Other regional and international financial institutions also participated in the syndicate.

The ministry said the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) provided partial political and commercial risk insurance, while institutions such as the African Export-Import Bank (Afrexim), Abu Dhabi Exports Office (ADEX), ECOWAS Bank for Investment and Development (EBID), Nexent Bank N.V., and Zenith Bank (through its UK, Paris, and Nigerian branches) contributed to the funding.

First Abu Dhabi Bank was named as the agent across all facilities and Intercreditor Agent, with the ministry describing the deal as a strong signal of international investor confidence in Nigeria’s reform agenda and infrastructure pipeline. The project is structured under an EPC+F (Engineering, Procurement, Construction + Financing) model and awarded to Hitech Construction, which the government called one of the nation’s leading infrastructure firms.

While the ministry emphasized the project’s long-term goals of resilience and efficiency, the announcement reignited scrutiny over the previous award of the ₦15 trillion contract to Hitech Construction. The deal had drawn public criticism for its perceived lack of transparency and the close ties between President Tinubu and Mr. Chagoury.

Defending the award, Minister of Works Dave Umahi said the contract was granted based on Hitech’s technical capacity and experience, especially in concrete paving. He referenced the company’s past involvement in the Oworonshoki-Apapa Road reconstruction as evidence of its competence and insisted that due process was followed throughout the procurement.