- $100 million Earlier from Ecowas Bank
BY BONNY AMADI
The Nigerian federal government has barely within two weeks obtained two separate loans amounting to $847 million to finance the Lagos-Calabar coastal highway.
Earlier in the week, the Ecowas Bank for Investment and Development amongst other loans approved for other countries, also approved $100 million for infrastructure development tied to the LAGOS- Calabar coastal highway.
This was followed with a $747 million syndicated loan for the financing of phase 1, section 1 of the Lagos-Calabar coastal highway, which the Federal Government disclosed on Wednesday.
The $747 million syndicated loan information is contained in a statement by Mohammed Manga, Director of Information and Public Relations at the Ministry of Finance, as he disclosed that the financing covers the 47.47 kilometre stretch from Victoria Island to Eleko Village in Lagos.
Manga said the financing marked the first syndicated road infrastructure loan of its size in Nigeria and was a strong signal of global investor confidence in the country’s reform trajectory and infrastructure pipeline.
He said the Deutsche Bank acted as global coordinator, initial mandated lead arranger and book runner and participated in the syndicate, alongside other regional and international lenders.
The director added that the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) provided partial political and commercial risk insurance.
Said he: “The syndicate includes support from development finance institutions, export credit agencies and international commercial banks, notably First Abu Dhabi Bank, also acting as Agent across all facilities and Intercreditor Agent, whose involvement underscores its strong and growing support for Nigeria.
“Other lenders involved the African Export-Import Bank, the Abu Dhabi Exports Office (ADEX), the ECOWAS Bank for Investment and Development (EBID), Nexent Bank N.V. (formerly known as Credit Eu- rope Bank N.V.) and Zenith Bank (through its UK, Paris and Nigeria offices).
“The project is structured as an EPC+F (Engineering, Procurement, Construction + Financing) contract awarded to Hitech Construction Company, one of Nigeria’s leading infrastructure firms”.
Manga said the structure aimed at a strategic partnership between the government and the private sector, seamlessly aligning technical execution with financing solutions.
The statement disclosed that it enables fast-track project delivery while unlocking and maximising private sector appetite for investment in the country’s priority infrastructure. He said the construction of phase 1; section 1 of the highway was already over 70 percent complete.
Informed the statement: “The highway, constructed using Continuously Reinforced Concrete Pavement (CRCP), reflects a commitment to long-term resilience and efficiency. Engineered for a minimum lifespan of 50 years with minimal maintenance, it offers outstanding durability and cost-effectiveness.
“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.
Recommended for you
Leave a Reply
Leave a Reply
