Nigeria is securing approximately $1.2 billion in financing from the United Arab Emirates (UAE) and is deploying these funds toward construction of a specific section of a new highway project. The presidency of the country, one of West Africa's largest economies, announced on December 26, 2025, that the credit is financing the construction of a 56-kilometer (35-mile) segment under the flagship Lagos-Calabar Coastal Highway project. The ultimate goal is defined as creating a total 700-kilometer-long highway corridor along Nigeria's Atlantic coast and implementing a transportation corridor that connects many of the country's major economic centers. With these characteristics, the project ranks among the largest infrastructure investments the country has undertaken to date.
President Bola Tinubu, in a written statement, characterized the closing of the financing agreement as "a major achievement" and emphasized that the Lagos-Calabar Coastal Highway project will proceed uninterruptedly. Tinubu also noted that the government is pursuing creative financing methods that support infrastructure investments. This approach does not strain the country's budgetary resources and shifts large-scale projects toward a model wherein progress is driven by contributions from international investors and multilateral organizations.
Looking at the financing structure of the credit package, the transaction is being fully underwritten by First Abu Dhabi Bank (FAB). The risk mitigation component of the credit is being provided by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). This structure exemplifies the trend of Gulf-sourced capital being directed toward large-scale public infrastructure in Sub-Saharan Africa. Nigeria notes that it also secured $747 million in financing in July 2025 for another section of the same highway; consequently, total international financing for the project over the past six months has reached approximately $2 billion.
From a supply chain and regional logistics perspective, the strategic value inherent in the Lagos-Calabar Coastal Highway extends across multiple dimensions. First, cargo flows between the Lagos port region and the Calabar port to the east currently operate over a fragmented road network with extended transit times; the new corridor will consolidate these flows and transform domestic distribution models toward Nigeria's hinterland. Second, the project can connect industrial zones, agricultural processing facilities, and logistics centers emerging along the coastal strip; this opens the way for private sector investors to undertake multimodal planning. Third, the ICIEC guarantee in the financing structure provides a template whereby similarly scaled public infrastructure projects can borrow at lower cost. Finally, the project assumes the character of a critical backbone for cross-border road transport vision within the Economic Community of West African States (ECOWAS) region; thus it is positioned as an infrastructure investment that supports supply chain efficiency across West Africa over the long term.
Key Points:
1. Nigeria is securing a $1.2 billion loan from the UAE.
2. The credit is financing a 56-kilometer section of the Lagos-Calabar Coastal Highway.
3. First Abu Dhabi Bank is fully underwriting the transaction.
4. ICIEC is providing risk mitigation coverage.
5. The highway will ultimately be 700 km in length and will connect along the Atlantic coast.
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