The Digest:
The Federal Government of Nigeria has secured a $747 million loan to finance Phase 1, Section 1 of the Lagos-Calabar Highway. The loan, arranged by Deutsche Bank, is a significant step towards infrastructure development, showcasing global investor confidence in Nigeria’s reforms.
Key Points:
- The loan is intended for the construction of Phase 1, Section 1 of the Lagos-Calabar Highway, from Victoria Island to Eleko Village.
- The syndicated loan is the largest of its kind in Nigeria, signaling international confidence in Nigeria’s infrastructure plans.
- Deutsche Bank acts as the global coordinator, with other major international banks and financial institutions involved in the syndicate.
- The project is designed to be a Public-Private Partnership (PPP), ensuring effective delivery and financing of the highway.
- The highway uses Continuously Reinforced Concrete Pavement (CRCP) for enhanced durability, designed for a lifespan of at least 50 years with minimal maintenance.
- The construction of the highway is over 70% complete, aiming to improve long-term road infrastructure.
- The loan represents a success of Nigeria’s macroeconomic reforms, positioning the country as ready for more private sector participation in infrastructure development.
This $747M loan, which funds the first phase of the Lagos-Calabar Highway, reflects Nigeria's growing ability to attract international capital and further its infrastructure goals. The highway will play a key role in boosting the nation's long-term economic development.
Sources: Vanguard News
