Nigeria has secured a $747 million syndicated loan led by Deutsche Bank to commence construction of the first phase of its ambitious 700-kilometre coastal highway project.
The Federal Ministry of Finance confirmed the deal on Thursday through its spokesperson, Mohammad Manga, who described the facility as the largest road infrastructure loan ever arranged for Nigeria.
Deutsche Bank is acting as the global coordinator for the transaction, working alongside a syndicate that includes First Abu Dhabi Bank, African Export-Import Bank, Abu Dhabi Exports Office, ECOWAS Bank for Investment and Development, and Nigeria’s Zenith Bank.
According to the finance ministry, the initial tranche will fund the first 47.47 kilometres of the planned Lagos–Calabar Coastal Highway.
The entire project is estimated to cost around $11 billion and is expected to be delivered in phases over an eight-year timeline.
The coastal highway is designed to enhance Nigeria’s transport network by connecting Lagos, the nation’s commercial hub, with the southeastern port city of Calabar.
The route is expected to boost regional trade, improve the movement of goods and services, and unlock economic opportunities for coastal communities along the corridor.
Analysts say the syndication demonstrates renewed investor confidence in Nigeria’s infrastructure roadmap and reflects the country’s push to attract large-scale private capital for critical national projects.
The Federal Government under President Bola Tinubu has prioritised infrastructure upgrades as part of a broader strategy to address logistics bottlenecks and stimulate economic growth.
The coastal highway project has already attracted significant attention due to its scale and expected socio-economic impact, positioning it as one of the largest transport initiatives in West Africa.
Stakeholders see the loan arrangement as a clear signal of improved deal structuring and collaboration between Nigeria and global financial institutions to deliver long-term assets that will strengthen the country’s competitiveness in the region.
The Ministry of Finance has not disclosed further details about the disbursement timeline or execution milestones but indicated that additional phases of funding will be required as construction progresses.
Local banks and regional development finance institutions are expected to play a role in subsequent financing rounds to ensure steady project delivery.
The syndicated loan deal is aligned with Nigeria’s broader commitment to infrastructure-led growth and reflects efforts to deepen partnerships with international lenders and export credit agencies.
