JEDDAH, Saudi Arabia, October 7, 2025 – The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) (https://ICIEC.IsDB.org), a Shariah-based multilateral insurer and member of the Islamic Development Bank (IsDB) Group, has announced its landmark support for the Lagos-Calabar Coastal Highway Project — a transformative infrastructure initiative set to redefine transportation, trade, and economic growth in Nigeria and across West Africa.
ICIEC is providing Non-Honoring of Sovereign Financial Obligations (NHSFO) insurance coverage for USD 466 million in Islamic financing extended by Deutsche Bank and First Abu Dhabi Bank to the Federal Government of Nigeria.
The financing package, with a seven-year tenor, is designed to mobilize international capital for one of Nigeria’s most ambitious and strategically significant transport projects.
Lagos-Calabar Coastal Highway Project: A New Era for West African Connectivity
The Lagos-Calabar Coastal Highway Project involves the construction of a 47.7-kilometer, six-lane coastal expressway along Nigeria’s southern corridor, with a centrally reserved lane for a future railway line.
This multimodal design reflects a forward-looking approach to infrastructure development that aims to ease congestion in Lagos, Africa’s most populous city, while reducing travel times and improving logistics efficiency for businesses.
Once completed, the project will serve as a key artery connecting Nigeria’s industrial and commercial hubs to regional markets across the ECOWAS Trans-West African Coastal Highway corridor.
The initiative is aligned with Nigeria’s Vision 2050 strategy and supports the United Nations Sustainable Development Goals (SDGs) — notably SDG 8 (Decent Work and Economic Growth), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 11 (Sustainable Cities and Communities).
Driving Economic Growth, Jobs, and Local Empowerment
Beyond infrastructure improvements, the Lagos-Calabar Coastal Highway Project represents a catalyst for socioeconomic transformation.
The project is expected to create more than 900 direct and 300 indirect jobs, while stimulating entrepreneurship and small business participation across multiple value chains.
With 40% of subcontracts allocated to Nigerian SMEs, the initiative directly supports inclusive economic development and local empowerment.
Structured training programs will provide community members with technical skills in construction, logistics, and project management, creating a skilled workforce that continues to benefit Nigeria’s economy long after project completion.
Sustainability and Climate-Resilient Infrastructure
Environmental and social sustainability form the cornerstone of the Lagos-Calabar Coastal Highway Project. Guided by comprehensive Environmental and Social Impact Assessments (ESIAs), the project integrates green construction techniques, climate-resilient designs, flood mitigation systems, and biodiversity protection measures.
By adopting sustainable practices, the project contributes to SDG 13 (Climate Action) and aligns with Nigeria’s commitments to reduce its carbon footprint while improving urban resilience.
A strong emphasis on community engagement ensures transparent communication with local residents, fair compensation for affected households, and proactive social inclusion policies that promote shared prosperity.
ICIEC’s Role in Strengthening Investor Confidence
Through its Non-Honoring of Sovereign Financial Obligations (NHSFO) coverage, ICIEC plays a critical role in de-risking the Lagos-Calabar Coastal Highway Project and boosting investor confidence in Nigeria’s infrastructure sector.
The coverage provides assurance to international lenders and investors, ensuring that the financing structure adheres to Shariah principles while mitigating sovereign credit risks.
Dr. Khalid Khalafalla, CEO of ICIEC, emphasized the institution’s commitment to fostering sustainable development through Islamic finance.
“This project exemplifies how Islamic finance, combined with robust risk mitigation, can drive transformative and inclusive development.
ICIEC’s insurance support ensures investor confidence, paving the way for Nigeria to build the resilient infrastructure it needs to thrive economically, socially, and environmentally.
We are proud to contribute to a project that reflects our mission and our unwavering commitment to the Sustainable Development Goals,” he stated.
A Strategic Step Toward Regional Integration
The Lagos-Calabar Coastal Highway Project not only strengthens Nigeria’s domestic transport network but also enhances the country’s role as a gateway to West African trade corridors.
As part of the ECOWAS Trans-West African Coastal Highway, it will facilitate smoother cross-border commerce, boost tourism, and enable greater regional integration.
This partnership underscores the importance of multilateral cooperation and Islamic insurance as tools for sustainable development financing.
With ICIEC’s support, Nigeria is better positioned to harness the full potential of its infrastructure, improve supply chain efficiency, and achieve long-term growth.
Distributed by APO Group on behalf of Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
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About ICIEC
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank (IsDB) Group, was established in 1994 to promote trade and investment among its 50 Member States through credit enhancement and risk mitigation solutions.
As the world’s only Islamic multilateral insurer, ICIEC has maintained its “Aa3” rating by Moody’s for 17 consecutive years and an “AA-” rating by S&P, underscoring its financial strength and stability.
Since inception, ICIEC has insured over USD 121 billion in trade and investment, supporting strategic sectors such as energy, manufacturing, infrastructure, healthcare, and agriculture across the Islamic world.
🌐 Website: https://ICIEC.IsDB.org
SOURCE: Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC)
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