Nigeria has secured $1.2 billion in financing from the United Arab Emirates to accelerate construction of the Lagos–Calabar Coastal Highway, a strategic transport corridor spanning the country’s southern Atlantic coast.

The funding will cover a 56-kilometre section of the planned 700-kilometre highway, which is designed to connect major economic hubs, reduce transport costs, and enhance regional trade and logistics. The facility was fully underwritten by First Abu Dhabi Bank, with risk mitigation provided by the Islamic Corporation for the Insurance of Investment and Export Credit.

President Bola Tinubu called the financing a “major milestone,” noting that it would safeguard the project’s continuity and allow the government to continue exploring innovative financing structures for large-scale infrastructure.

The highway is being developed in phases, with Nigeria having previously secured $747 million in July for another segment, reflecting a cautious approach amid fiscal pressures and debt sustainability concerns.

Once completed, the Lagos–Calabar Coastal Highway is expected to become one of Nigeria’s largest infrastructure investments, supporting long-term economic growth along the coast while easing congestion and improving connectivity between key commercial centres.