|
Listen now
Getting your Trinity Audio player ready...
|
Nigeria secured a $747 million syndicated loan for a the Lagos-Calabar Coastal Highway that will link the nation’s commercial capital to a key coastal city.
The funding, led by Deutsche Bank AG, will finance construction of the first phase of the Lagos-Calabar highway, a 700-kilometer (435-mile) project initiated by President Bola Tinubu, the finance ministry said in a statement on Thursday.
The $10 billion project was criticized by opposition leaders when it was first awarded in 2023 to Hitech a company that belongs to a Gilbert Chagoury, a close confidante of the president.
The presidency defended the project as vital to providing economic opportunities to coastal communities in the southern part of the country.
It’s the first syndicated road-infrastructure loan of its size in Nigeria, according to the statement. The government plans to toll the road to “ensure the project’s operational and financial sustainability,” the ministry said.
The syndicate includes regional and international lenders such as the African Export-Import Bank, the Abu Dhabi Exports Office, the Ecowas Bank for Investment and Development and Zenith Bank, with Deutsche acting as global coordinator.
Financing for subsequent phases of the project is already being structured, with strong interest from regional and international investors, the ministry said.
Estimated to cost N15 trillion ($9.8 billion), the Lagos-Calabar Coastal Highway is part of Nigeria’s 23-year plan to improve the nation’s infrastructure.
As much as 30% of the funding for the highway is expected to come from the government, with Nigerian builder Hitech Construction Co. sourcing the rest, Works Minister Dave Umahi had said.
Follow the MoneyCentral Nigeria channel on WhatsApp: Click here!
