Nigeria has obtained a US $747 million syndicated loan to kickstart construction of the first phase of its proposed 700-kilometre coastal highway, the Federal Ministry of Finance made the announcement and said this marks the largest infrastructure loan of its kind ever secured by the country for a road project.
The financing deal is led by Deutsche Bank, acting as global coordinator, with participation from several international and regional financial institutions, including First Abu Dhabi Bank, African Export-Import Bank (Afreximbank), Abu Dhabi Exports Office, the ECOWAS Bank for Investment and Development, and Zenith Bank.
Scope of work
According to ministry spokesperson Mohammad Manga, the initial section funded under this agreement will cover 47.47 kilometres, forming part of a much larger plan to link Lagos, Nigeria’s commercial hub, to Calabar, a key port city in the southeast. The entire highway project is estimated to cost around $11 billion and is scheduled to be completed over a period of approximately eight years.
The coastal highway is expected to significantly enhance Nigeria’s transportation infrastructure, facilitate smoother logistics and trade along the Atlantic coastline, and create numerous jobs during and after construction. It is also projected to improve connectivity between several coastal states, contributing to regional economic integration and development.
This project aligns with the federal government’s strategy to modernise national infrastructure and promote long-term economic growth. Analysts view the loan arrangement as a strong signal of international confidence in Nigeria’s economic direction and infrastructure plans.
At the time of the announcement, the exchange rate stood at approximately ₦1,523.48 to the U.S. dollar, underscoring the need for strategic investments in critical sectors to stabilise and grow the nation’s economy.