By Stephen | July 11, 2025 | Abuja, Nigeria
Abuja, Nigeria – The Federal Government of Nigeria has secured a $747 million syndicated loan, led by Deutsche Bank, to finance the construction of the first phase of the ambitious Lagos–Calabar Coastal Highway.
The facility, which marks a major milestone in Nigeria’s infrastructure development plan, will fund the initial 47 kilometers of the 700-kilometer mega-project stretching from Lagos in the southwest to Calabar in the southeast. The project is a key part of the federal government’s $11 billion coastal highway initiative, aimed at boosting trade, tourism, and regional connectivity.
“This is more than a road; it is a strategic artery for Nigeria’s future,” said Works Minister Dave Umahi during the signing ceremony in Abuja. “This project will open up economic corridors, enhance coastal tourism, and generate thousands of jobs.”
According to the Ministry of Finance, the syndicated loan was arranged with favorable terms, supported by a sovereign guarantee and insured by international export credit agencies. The funding will be used for engineering works, land reclamation, and the development of critical drainage systems along the coastal route.
Construction has already begun, with bulldozers and cranes seen clearing paths in the Lekki–Epe axis of Lagos. The highway is expected to include smart road infrastructure, pedestrian overpasses, bridges, and climate-resilient design elements to withstand erosion and flooding.
Critics, however, have raised concerns about environmental impact and the displacement of coastal communities. Several civil society groups have called for transparent compensation and environmental assessments as the project expands.
“We support national development, but not at the expense of local livelihoods and ecosystems,” said Kemi Olatunji, an environmental activist with the Coastal Justice Network.
Despite the criticisms, the government has reassured the public that all necessary environmental and social safeguards are being implemented in compliance with global standards.
The Lagos–Calabar Coastal Highway is expected to significantly ease travel across six coastal states and strengthen regional trade, especially with the African Continental Free Trade Area (AfCFTA) coming into full effect.
As the first stretch of the project gains momentum, government officials say more financing agreements are in the pipeline to complete the remaining sections of the landmark highway.