The Federal Government has reportedly secured a $747 million loan to fund the first phase of the Lagos-Calabar Coastal Highway project.
In a report on Thursday, the Ministry of Finance noted that the funding arrangement, coordinated by Deutsche Bank, is the largest of its kind ever secured by Nigeria for a road infrastructure project.
Naijaonpoint understands that the first phase of the project to be covered by the loan covers 47.47 kilometres, forming part of the 700-kilometre (435-mile) expressway designed to link Lagos State to Calabar, the Cross River State capital.
In his remark, the Ministry spokesperson, Mohammad Manga, described the syndicated loan as a significant development.
He praised that the project marks a significant step toward achieving the incumbent administration’s infrastructure development agenda.
Deutsche Bank, which acted as the global coordinator, was joined by First Abu Dhabi Bank, African Export-Import Bank, Abu Dhabi Exports Office, ECOWAS Bank for Investment and Development, and Nigeria’s Zenith Bank.
“This is the first time Nigeria is securing such a large-scale syndicated loan strictly for road infrastructure,” Manga stated, according to Reuters.
The Lagos-Calabar Coastal Highway project is estimated to cost approximately $11 billion and is expected to be completed in phases over an eight-year period.
The highway is envisioned as a game-changing piece of infrastructure that will open up economic corridors along Nigeria’s coastline, boost regional connectivity, and enhance trade and tourism.
Naijaonpoint reports that President Tinubu’s government has consistently defended the project amid public debates over its cost, timeline, and environmental impact.
The incumbent administration maintained that the project will bring long-term economic benefits and position Nigeria as a West African logistics hub.