The Federal Executive Council (FEC) has approved a $652 million financing facility from China Exim Bank for the construction of a key road corridor that will connect the Lekki Deep Sea Port and Dangote Refinery complex to multiple southern Nigerian states.
The funding, approved during the FEC meeting chaired by President Bola Tinubu, is aimed at easing the transportation of goods from one of Nigeria’s most strategic industrial zones to inland destinations.
The Minister of Works, David Umahi, confirmed the development on Monday, stating that the road will serve as a vital evacuation corridor for goods originating from the Lekki Port, the 650,000 barrels-per-day Dangote Petroleum Refinery and the adjoining fertiliser plant.
According to Umahi, the road infrastructure will strengthen Nigeria’s logistics value chain, boost trade efficiency and support industrial growth across at least a dozen southern states.
“This project will significantly enhance the distribution of refined petroleum products and containerised goods from the Lekki corridor. It is a major strategic asset that supports the government’s industrialisation and infrastructure master plan,” Umahi said.
The Lekki corridor is emerging as one of West Africa’s most important logistics and industrial hubs. The Dangote Refinery, which is Africa’s largest, has begun early-stage operations and is expected to reduce Nigeria’s dependence on imported petroleum products.
The deep sea port, inaugurated in 2023, is designed to handle over 2.7 million twenty-foot equivalent units (TEUs) annually, offering Nigeria a competitive edge in regional maritime trade.
The road project, to be executed through concessional financing from China Exim Bank, is part of ongoing collaboration between Nigeria and China on large-scale infrastructure development.
China remains Nigeria’s largest bilateral creditor, with outstanding loans exceeding $5 billion, according to the latest data from the Debt Management Office (DMO).
Chinese loans have supported projects across rail, power and road sectors in recent years.
Industry stakeholders view the evacuation corridor as critical to unlocking the full economic potential of investments in the Lekki Free Trade Zone and adjacent industrial assets. The corridor will also reduce congestion at Lagos ports and improve turnaround times for freight operators.
Analysts have welcomed the move but emphasised the importance of transparency, timely execution, and effective debt servicing in implementing such large-scale bilateral projects. While the financing terms were not immediately disclosed, concessional funding from China Exim typically offers lower interest rates and extended repayment tenors compared to commercial loans.
The road project aligns with broader efforts to decongest Lagos, stimulate regional trade, and create efficient linkages between Nigeria’s industrial centres and consumer markets.
Construction timelines are yet to be formally announced, but the Ministry of Works is expected to provide updates in subsequent project briefings. The execution will likely involve public-private participation with oversight from relevant infrastructure agencies.
