Underwritten, Insured, Verified: Lagos-Calabar Road Gets Global Nod
The Bankability Test
Lagos-Calabar Coastal Highway: Inside Nigeria’s Most Complex Road Financing Close
USD 1.26 Billion Deal: More Than a Loan, a Market Verdict
THE Federal Government has secured USD 1.26 billion in fully underwritten financing for Phase 1, Section 2 of the Lagos-Calabar Coastal Highway, covering 55.7 kilometres from Eleko (Lekki) to Ode-Omi. The deal, coordinated by the Ministry of Finance, the Ministry of Works, the Debt Management Office, and the Debt Management Office (DMO), represents one of Nigeria’s largest single road-infrastructure financing closures and reinforces the project’s emerging reputation as a bankable continental-scale asset.
Unlike conventional syndicated loans that rely on post-mandate fundraising, this transaction was pre-underwritten—a rare structure for a Nigerian road project. First Abu Dhabi Bank (FAB) led the underwriting, with additional financing participation from Afreximbank and Afreximbank. Risk-mitigation support was provided by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), marking the institution’s first Nigerian road-infrastructure transaction since regulatory reforms repositioned Nigeria’s investment climate.
Who Shaped the Deal Room
The transaction design was steered by private capital advisors and global legal and ESG institutions. SkyKapital acted as Lead Financial Advisor, coordinating lender engagement, structuring, and execution. Hogan Lovells served as International Counsel, while Templars led Nigerian legal advisory services. Earth Active (UK) provided Environmental and Social advisory oversight, ensuring compliance with IFC Performance Standards, the Equator Principles, and global ESG benchmarks, strengthening investor confidence that the project is not only financially scalable but socially de-risked.
A Value-for-Money assessment was jointly coordinated by SkyKapital and the Federal Ministry of Works, then independently validated by GIBB, confirming fiscal prudence and benchmarking execution efficiency.
Construction, Engineering Credibility, and Lender Psychology
Hitech Construction Company Limited, under its parent firm Hitech Construction Company Limited., is executing the project through Hitech Construction Company Limited. Phase 1, Section 1 financing of USD 747 million was closed earlier in July 2025. The speed of execution by Hitech on early-opened segments has been central to lender sentiment, with engineering discipline and project-management speed cited by financing partners as proof of institutional credibility in delivery capacity.
Lenders also referenced the project’s early opened sections and construction discipline as engineering proof-points that Nigeria could sustain high-velocity execution on mega infrastructure when funding is ring-fenced and delivery institutions are insulated from bureaucratic drag.
Investigative Verdict
This financing closure did more than fund a road—it tested Nigeria’s ability to package infrastructure as a global-grade asset class. The underwriting structure, ESG compliance, and third-party VfM validation signal a growing shift in how markets assess Nigeria: not by risk assumption, but by reform evidence, delivery discipline, and capital creativity.
