The Federal Government has secured a $747 million loan to finance Phase 1, Section 1 of the Lagos-Calabar Coastal Highway project, running from Victoria Island to Eleko Village in Lagos.

According to a statement released by the Ministry of Finance on Wednesday, Deutsche Bank arranged the facility. The loan marks “the first syndicated road infrastructure loan of its size in Nigeria” and represents “a strong signal of global investor confidence in the country’s reform trajectory and infrastructure pipeline,” the statement noted.

Deutsche Bank served as Global Coordinator, Initial Mandated Lead Arranger and Bookrunner. Other participants in the syndicate include First Abu Dhabi Bank, which is also acting as Agent across all facilities and Intercreditor Agent; the African Export-Import Bank (Afrexim); the Abu Dhabi Exports Office (ADEX); the ECOWAS Bank for Investment and Development (EBID); Nexent Bank N.V. (formerly Credit Europe 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) provided partial political and commercial risk insurance.

The Ministry stated that the highway is being constructed by Hitech Construction Company under an EPC+F (Engineering, Procurement, Construction + Financing) structure. “This structure aims at a strategic partnership between the Government and the private sector, seamlessly aligning technical execution with financing solutions. It enables fast-track project delivery while unlocking and maximizing private sector appetite for investment in the country’s priority infrastructure,” it said.

According to the statement, the construction of Phase 1, Section 1 is already over 70% complete. It is being executed using Continuously Reinforced Concrete Pavement (CRCP), which the ministry described as “engineered for a minimum lifespan of 50 years with minimal maintenance.”

“The project’s design and implementation have been shaped by comprehensive technical, legal, and environmental and social assessments, ensuring alignment with the highest international standards,” the statement added.

Commenting on the deal, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said: “This deal reflects the success of our macroeconomic reforms and the return of international capital to support Nigeria’s development.”

“We are focused on financing infrastructure in ways that are sustainable, transparent, and catalytic—and this transaction is a model of that vision in action,” he said.

Edun 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.”

“It 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 stated: “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.”