Deutsche Bank has led a US$747 million debt financing for the first phase of the Lagos-Calabar Coastal Highway in Nigeria. This is the largest loan ever raised for a road infrastructure project in the country.

The funds will support the construction of the first 47.5 kilometres of the highway, stretching from Victoria Island to Eleko Village in Lagos. This section marks the starting point of a planned 700km coastal highway that will run through several southern states, eventually reaching the port of Calabar. The full project is expected to cost about US$11 billion.

Deutsche Bank acted as global coordinator, initial mandated lead arranger, and bookrunner. The Islamic Corporation for the Insurance of Investment and Export Credit ( ICIEC ) provided partial political and commercial risk insurance.

Other lenders include First Abu Dhabi Bank as agent and intercreditor agent, African Export-Import Bank ( Afrexim ), Abu Dhabi Exports Office ( Adex ), Ecowas Bank for Investment and Development ( EBID ), Nexent Bank NV, and Zenith Bank via its UK, Paris and Nigerian branches.

The project is structured as an EPC+F ( engineering, procurement, construction plus financing ) contract awarded to Hitech Construction Company, a leading Nigerian infrastructure firm.

Durable technology

Construction work on Phase 1, Section 1 of the highway project is already over 70% complete. The road is being built using continuously reinforced concrete pavement ( CRCP ), a durable technology designed for a minimum lifespan of 50 years with minimal maintenance.

“This transaction is a vote of confidence in Nigeria's economic reform agenda,” comments Nigerian works minister David Umahi. “The Lagos-Calabar Highway is a strategic national asset, and this financing sets a strong precedent for future public-private infrastrucure partnerships.”

Once completed, the highway is expected to boost trade, tourism, connectivity, and regional development along Nigeria’s coastal corridor. The initial section is expected to serve as a critical proof of concept for the total project, which is projected to take approximately eight years to finish.

Tolling and service infrastructure is built into the design under the Infrastructure Concession Regulatory Commission ( ICRC ) framework.

Nigeria’s federal government recently approved an additional US$3 billion for Phase 2 of the project. Funding is being sourced through a combination of public-private partnerships, multilateral loans, and sovereign investment funds.