The Federal Government’s recent procurement of a ₦1.2 trillion syndicated loan from Deutsche Bank to fund the Lagos-Calabar Coastal Highway has ignited a wave of calls for transparency and accountability from fiscal policy analysts and transparency advocates.
The 700-kilometre project, which is a major pillar of the Renewed Hope Infrastructure Development Agenda, is already under heavy public scrutiny due to its scale, funding model, and the socio-economic implications surrounding its implementation.
Speaking to Daily Trust, development expert Musa Ibrahim raised alarms over the enormity of funds committed to the first phase of the project. “We’re looking at over ₦4.93 billion per kilometre. That’s a staggering amount that necessitates total financial transparency,” he stated.
He noted that ₦1.06 trillion has already been released for the pilot phase, which runs from Eko Atlantic to the Lekki Deep Sea Port, representing just six percent of the total project.
“There must be rigorous oversight. Agencies like the EFCC should ensure not a single kobo is misappropriated,” Ibrahim stressed.
Ibrahim also criticised the pace of federal borrowing, lamenting that citizens are yet to feel tangible economic impact from the escalating loans. “This level of borrowing without transparency is not sustainable. Projects of this nature must show results that touch people’s lives, not just economic theory,” he said.
Moreover, he pointed to multiple litigations resulting from property demolitions along the highway’s path, demanding that the government promptly compensate affected individuals and communities.
Umar Yakubu, Executive Director at the Center for Fiscal Transparency and Public Integrity, echoed these concerns. “We are dealing with a government that doesn’t prioritise fiscal discipline. They are borrowing to fund opulence—new convoys, new buildings, and bloated administrative budgets,” he said.
Yakubu accused the administration of masking its debt agenda with public-private jargon, yet executing expensive projects with little scrutiny. “We are pushing ₦150 trillion in public debt. The cost of road construction in Nigeria is among the highest globally. Something doesn’t add up,” he warned.
Despite criticisms, the Federal Ministry of Finance issued a statement detailing the structure and benefits of the financing. The loan was coordinated by Deutsche Bank, with support from First Abu Dhabi Bank, Afrexim Bank, Zenith Bank, Nexent Bank N.V., and ECOWAS Bank for Investment and Development (EBID). The facility is reportedly Nigeria’s largest syndicated road infrastructure loan to date.
“The project is backed by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), offering partial political and commercial risk insurance, making it a model for public-private partnership in infrastructure,” the ministry’s press release stated.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, described the funding agreement as “a milestone transaction that reaffirms global investor confidence in Nigeria’s reform trajectory.”
He added that the Lagos-Calabar Coastal Highway exemplifies President Tinubu’s commitment to leveraging private sector investment for critical infrastructure.
Construction of Phase 1 Section 1 is already over 70% complete, handled by Hitech Construction Company under an Engineering, Procurement, and Construction plus Financing (EPC+F) arrangement.
Hitech’s Managing Director, Dany Abboud, confirmed the project’s reliance on Continuously Reinforced Concrete Pavement (CRCP), promising a 50-year lifespan with minimal maintenance.
The highway is expected to stimulate tourism, boost regional trade, lower transportation costs, and support job creation. A tolling model is in development to ensure long-term financial sustainability.
Nonetheless, civil society voices continue to press for openness. “It is no longer enough to secure funding,” Yakubu asserted. “The government must publish project details, breakdowns of disbursements, names of contractors, and independent audits at every stage.”
The Lagos-Calabar Coastal Highway is projected to span eight states, including Lagos, Ogun, Ondo, Delta, Bayelsa, Rivers, Akwa Ibom, and Cross River. It is expected to cost around ₦15 trillion in total, according to Minister of Works David Umahi.
While the government maintains the road is vital to boosting inter-state commerce and logistics, critics argue that the financial opacity, rising debt, and displacement of citizens raise serious concerns.