The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) has committed insurance support for a $626 million financing package for Phase II of Nigeria’s Lagos–Calabar Coastal Highway, a major infrastructure project expected to improve transportation, stimulate economic activity and create new opportunities for communities along the country’s coastline.
The agreement was signed during the Islamic Development Bank Group’s 2026 Annual Meetings in Baku, Azerbaijan, with the financing backed by ICIEC’s Non-Honouring of Sovereign Financial Obligations insurance policy. The arrangement is structured in favour of First Abu Dhabi Bank, while Nigeria’s Federal Ministry of Finance serves as the borrower.
The coastal highway is widely regarded as one of Nigeria’s most ambitious transport projects, designed to connect key economic centres and coastal communities from Lagos to Calabar. Beyond easing travel, the road is expected to transform the movement of goods, helping farmers, traders, manufacturers and small businesses access markets more efficiently and at lower cost.
In regard to many communities along the coastal route, improved road infrastructure could mean faster access to schools, healthcare facilities and commercial hubs, reducing travel times and opening up new economic opportunities. The project is also expected to support job creation during construction and stimulate long-term investment in tourism, logistics, housing and other sectors linked to transport development.
ICIEC’s insurance support covers 95 per cent of the financing across two tranches, including $276 million with a seven-year tenor and $350 million with a nine-year tenor. By reducing sovereign financing risks, the cover helps attract international capital needed to deliver large-scale infrastructure projects that might otherwise face funding constraints.
Infrastructure experts have long identified transport bottlenecks as a major challenge to Nigeria’s economic growth. The Lagos–Calabar Coastal Highway is expected to strengthen supply chains, lower logistics costs and improve links between ports, industrial centres and regional markets, supporting broader efforts to diversify the economy and enhance competitiveness.
Speaking on the transaction, ICIEC Chief Executive Officer, Khalid Khalafalla, said the initiative demonstrates how Shariah-compliant risk mitigation can help unlock financing for transformative development projects. He noted that the corporation’s involvement strengthens lender confidence while supporting infrastructure investments that promote connectivity and socio-economic progress.
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