FG secures $747m Deutsche Bank-led loan for coastal highway project
BY MOTOLANI OSENI
The Federal Government has secured a $747 million syndicated loan led by Deutsche Bank to fund the initial phase of Nigeria’s ambitious 700-kilometre coastal highway project.
According to the Ministry of Finance, the loan is the largest syndicated financing ever obtained for road infrastructure in the country, underscoring growing global investor confidence in Nigeria’s economic reforms and infrastructure pipeline.
Deutsche Bank served as global coordinator, initial mandated lead arranger, and bookrunner for the deal. Other key financiers include First Abu Dhabi Bank, the African Export-Import Bank, Abu Dhabi Exports Office, ECOWAS Bank for Investment and Development, Nexent Bank N.V., and Zenith Bank through its Nigerian, UK, and Paris branches.
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) provided partial political and commercial risk insurance for the transaction.
The loan will finance the first 47.47-kilometre section of the highway, which will eventually link Lagos to Calabar.
The entire project is estimated to cost $11 billion and is expected to be completed over eight years. The contract follows the EPC+F (Engineering, Procurement, Construction + Financing) model and was awarded to Hitech Construction Company, a Nigerian infrastructure firm. This integrated arrangement is designed to fast-track delivery and encourage private-sector participation.
READ ALSO: S’Court affirms Gov. Monday Okpebholo’s election as duly elected
Construction of the financed section is already over 70 per cent complete. The road is being built with Continuously Reinforced Concrete Pavement (CRCP), a highly durable material with a projected lifespan of 50 years and minimal maintenance needs.
The Ministry of Finance said the design of the coastal highway adheres to international best practices, shaped by extensive legal, technical, environmental, and social assessments.
Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, described the financing agreement as a milestone that reflects renewed global confidence in Nigeria’s economy under the administration of President Bola Tinubu.
He said the transaction demonstrates the government’s commitment to transparent and sustainable infrastructure development through Public-Private Partnerships, to foster inclusive growth and long-term economic stability.
Related to this topic:
