The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) extended $466 million in insurance coverage to the Lagos-Calabar Coastal Highway Project, a major infrastructure initiative poised to enhance Nigeria’s economic growth, regional integration, and sustainable development.
The project entails the construction of a 47.7-kilometer, six-lane highway along Nigeria’s southern coast, designed to improve connectivity within Lagos and beyond. Importantly, the highway includes a central corridor reserved for a future railway, highlighting a forward-looking approach to multimodal transport.
ICIEC provided NHSFO insurance coverage for $466 million of Islamic financing extended by Deutsche Bank and First Abu Dhabi Bank to the Federal Government of Nigeria. This risk mitigation is crucial in attracting international investment for this strategic project, which has a seven year tenor.
The highway will significantly reduce travel times and ease congestion in Lagos, Africa’s busiest city, boosting productivity for businesses and commuters. The project is expected to generate around 900 direct and 300 indirect jobs, with a strong emphasis on recruiting local workforce, notably women and youth. Structured training programmes will enhance workers’ skills, supporting long-term employability.
Furthermore, at least 40% of contracts are allocated to local small and medium-sized enterprises, promoting inclusive economic growth. Environmental and social sustainability are key pillars of the project. Comprehensive impact assessments and stakeholder engagement have guided community compensation and livelihood restoration plans.
Regionally, the highway strengthens West African connectivity by supporting the Trans-West African Coastal Highway corridor under the ECOWAS infrastructure programme, facilitating trade and integration across borders. This, combined with the planned railway corridor, enhances Nigeria’s role as a gateway to regional markets.
The project also directly supports several UN Sustainable Development Goals, including SDG 8 on decent work and economic growth through job creation and skills development; SDG 9 on building resilient infrastructure; SDG 11 on making cities inclusive, safe, and sustainable by improving urban transport; and SDG 13 by taking action to combat climate change through environmentally responsible construction and design.
ICIEC’s insurance backing is instrumental in mobilizing the financing needed to bring this transformative project to life, supporting Nigeria’s sustainable development and regional competitiveness for years to come.