Experts in the Transparency sector have called for transparency in the funding of the Lagos-Calabar coastal road as the federal government has secured an additional loan facility from Deutsche Bank.
The government had secured the additional N1.2 trillion ($747 million) syndicated loan to finance Phase 1 Section 1 of the Lagos-Calabar Coastal Highway.
Daily Trust reports that the road is a flagship initiative under the federal government’s Renewed Hope Infrastructure Development Agenda.
Speaking to Daily Trust, a development Expert, Musa Ibrahim stated that the amount involved is huge, hence transparency is critical.
“The 700km Lagos-Calabar Coastal Highway will cost N4.93bn per kilometre, and we understand that the contract was awarded on a counterpart-funding basis and not a Public-Private Partnership.
“Also about N1.06tn has been released for the pilot phase, or six per cent of the project, which begins at Eko Atlantic and is expected to terminate at the Lekki Deep Sea Port. All these monies are huge and the economic and financial crimes commission (EFCC), among others must be involved to ensure no kobo is diverted.”
‘Rate of borrowing alarming’
Speaking on the issue of external borrowing to fund the project, he noted that “The rate federal government is borrowing is alarming without transparency in the spending. Also, Nigerians are yet to feel the impact of all the borrowing.”
He added that the Project itself has caused litigations as many properties were demolished along the coastal line, as such, he called for adequate compensation.
Also reacting to the development, the Executive Director of the Center for Fiscal Transparency and Public Integrity, Umar Yakubu stated that the current government does not prioritise efficiency and fiscal discipline.
“Government officials are busy borrowing buying new cars and building unnecessary structures which is bloating our debt.
“There is no transparency in our borrowings ans our debt is almost N150 trillion as we speak. Even with the current amount spent on contructing kilometer of road in Nigeria is ridiculous and has to be the most expensive I have seen,” he said.
He added, “However, the contract has already awarded and alot of investment has gone it into it but the most important is that it should be transparent and deliver N dividend of democracy
Details of loan
The Federal Ministry of Finance through its Director Press, Mohammed Manga announced that Deutsche Bank led the syndicate as Global Coordinator, Initial Mandated Lead Arranger, and Bookrunner, joining forces with regional and international lenders to fund the 47.47-kilometre stretch from Victoria Island to Eleko Village.
According to the ministry’s press release, the loan “marks the first syndicated road infrastructure loan of its size in Nigeria and is a strong signal of global investor confidence in the country’s reform trajectory and infrastructure pipeline.”
“The syndicate includes prominent financial institutions such as First Abu Dhabi Bank, which also serves as Agent and Intercreditor Agent, African Export-Import Bank (Afrexim), ECOWAS Bank for Investment and Development (EBID), Nexent Bank N.V., and Zenith Bank through its UK, Paris, and Nigeria offices.
“The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) provides partial political and commercial risk insurance, underscoring the project’s robust risk mitigation framework.
“Construction on the highway, led by Hitech Construction Company—the Nigerian engineering firm contracted under an Engineering, Procurement, Construction plus Financing (EPC+F) arrangement—is already over 70% complete,” the finance ministry said.
The statement highlighted the project’s strategic partnership model designed to “enable fast-track project delivery while unlocking and maximising private sector appetite for investment in the country’s priority infrastructure.”
The Lagos-Calabar coastal highway will be built using Continuously Reinforced Concrete Pavement (CRCP), a technology selected for its long-term resilience.
The finance ministry explained that the highway is “engineered for a minimum lifespan of 50 years with minimal maintenance,” reflecting Nigeria’s commitment to durability and cost-efficiency in infrastructure development.
Beyond the technical specifications, the highway is envisioned as a critical trade and logistics corridor. It is expected to “enhance regional integration, tourism, reduce transport costs, and create jobs.” A tolling strategy, currently being finalised, aims to ensure the project’s operational and financial sustainability through a concession-backed framework. Financing for subsequent phases is already underway, with “strong interest from regional and international investors.”
Wale Edun, finance minister and coordinating minister of the economy, described the transaction as a milestone achievement, adding that “This deal reflects the success of our macroeconomic reforms and the return of international capital to support Nigeria’s development,” Edun said.
He added, “The closing of this market-defining financing is yet another testament to Mr. President’s commitment to accelerate the participation of the private sector in infrastructure financing and development.”
Edun emphasised that the project “positions the country as being ready for a full transition to the design, development, financing as well as operations and management of critical public infrastructure through Public Private Partnerships.”
He further noted that “It signals to investors and private sector participants, the sophistication and maturity of the Nigerian market and commitment of the Government to sanctity of contracts and innovative structures to fund critical national infrastructure that will deliver sustained and inclusive growth.”
Also, David Umahi, minister of works, echoed the sentiment, calling the transaction “a vote of confidence in Nigeria’s economic reform agenda.”
He described the highway as “a strategic national asset” and the financing as “a strong precedent for future public-private infrastructure partnerships.”
Dany Abboud, Hitech Construction’s Managing Director, also expressed hope in the company’s delivery. “With over 70% of Phase 1 Section 1 complete, we are showing that Nigerian engineering—backed by structured international finance—can meet global standards,” Abboud stated. He also pointed out that “the use of CRCP technology ensures unmatched durability and cost-efficiency.”
Khalid Khalafalla, CEO of ICIEC, added, “Through ICIEC’s sovereign risk coverage solution, we are unlocking vital infrastructure that will ease congestion, stimulate regional trade, and drive inclusive economic growth.”
He highlighted the broader benefits, including employment creation, capacity building, and bolstering small and medium-sized enterprises, noting the initiative’s alignment with sustainable development and multimodal connectivity objectives across West Africa.
When contacted, the media aide to the minister of Works, Orji Uchenna Orji, said he couldn’t comment on it but asked our reporter to reach out to the Director of Press for the ministry.
But efforts to reach the Director, Ahmed Muhammad, were not successful as he did not respond to phone calls and text messages sent to him.
Background
The Lagos-Calabar Coastal Highway project has begun following approval from the Federal Executive Council.
The highway project will be completed in sections with section one phase one (from Ahmadu Bello Way, Victoria Island to Lekki Phase 1) undertaken by Hitech Construction Company. The Lagos portion of the highway is designed to pass through Oniru Beach, Landmark Beach, and the Good Beach/Sol Beach.
Last month, the Minister of Works announced that construction of the Lagos-Calabar Coastal Highway project has begun following approval from the Federal Executive Council. The highway project will be completed in sections with section one phase one (from Ahmadu Bello Way, Victoria Island to Lekki Phase 1) being undertaken by Hitech Construction Company.
According to Mark Umahi, the Minister of Works, the first section of the 1.3km Lagos Calabar coastal road has been achieved. The highway, in a bid to improve cross-country connectivity and foster trade relations, is expected to run from Victoria Island, Lagos to Calabar, Cross River while passing through Ogun State, Ondo State, Delta State, Bayelsa State, Rivers State and Akwa-Ibom State.
The 700km road project is supposed to gulp N15 trillion according to Umahi.
