The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) has committed an insured financing package worth $626 million for Phase II of the Lagos–Calabar Coastal Highway project.
The announcement was made following the signing of an agreement during the Islamic Development Bank Group’s 2026 Annual Meeting held in Baku, Azerbaijan, between June 16 and 19.
According to the organisation, the funding support is aimed at advancing one of Nigeria’s most important transport infrastructure projects. The Lagos–Calabar Coastal Highway forms a major part of the country’s wider infrastructure development plans and is expected to improve connectivity across coastal regions upon completion.
The project is anticipated to boost the movement of goods and passengers, stimulate economic growth, lower transportation costs, and strengthen supply chains across the affected areas.
The financing arrangement is supported through ICIEC’s Non-Honouring of Sovereign Financial Obligations insurance policy. The coverage is structured in favour of First Abu Dhabi Bank, while Nigeria’s Federal Ministry of Finance serves as the borrower.
Under the agreement, the policy will provide 95 per cent coverage across two financing tranches — $276 million with a seven-year repayment period and $350 million with a nine-year repayment period. The risk protection is expected to encourage long-term international financing and support the successful execution of the highway project.
Speaking on the development, ICIEC Chief Executive Officer Khalid Khalafalla said the initiative highlights the effectiveness of Shariah-compliant risk management solutions in supporting large-scale development projects. He added that the arrangement would help increase investor confidence, attract long-term funding, and support infrastructure development that promotes economic and social advancement in Nigeria.
