Friday, August 21, 2026

Sharia-based investment firm commits $626 million to Lagos-Calabar coastal highway 

The policy provides 95% coverage across two tranches: $276 million with a seven-year tenor, and $350 million with a nine-year tenor.

• June 19, 2026
Lagos-Calabar Coastal Highway
Lagos-Calabar Coastal Highway

The Islamic Corporation for the Insurance of Investment and Export Credit has announced a total insured amount of $626 million for the financing of the Lagos–Calabar coastal highway, Phase II.

The ICIEC, a Shariah-based multilateral credit and political risk insurer and member of the Islamic Development Bank Group, made the announcement in a statement on Friday.

It stated that an agreement was signed on the sidelines of the IsDB Group 2026 annual meeting in Baku, Azerbaijan, from June 16 to 19, 2026.

“The ICIEC is to support the financing of the Lagos–Calabar coastal highway – Phase II in Nigeria. It is committing a total insured amount of $626 million in support of one of the country’s most strategically significant transport infrastructure projects,” the statement read.

“The Lagos–Calabar coastal highway project is a key component of Nigeria’s broader infrastructure development agenda. Upon completion, the project will significantly enhance regional integration and mobility, enabling more efficient movement of goods and people across the country’s coastal regions, thereby catalysing economic activity, reducing logistics costs, and strengthening supply chains,” it added.

According to ICIEC, the transaction is backed by its non-honouring of sovereign financial obligations (NHSFO) insurance policy, structured in favour of First Abu Dhabi Bank as the policyholder, with the Federal Ministry of Finance of Nigeria acting as the borrower. 

“The policy provides 95% coverage across two tranches: $276 million with a seven-year tenor, and $350 million with a nine-year tenor. By mitigating sovereign risk, ICIEC’s participation plays a critical role in facilitating access to long-term international financing and ensuring the successful implementation of this landmark infrastructure project.”

The Chief Executive Officer of ICIEC, Khalid Khalafalla, said, “Through this transaction, ICIEC is demonstrating the practical value of Shariah-compliant risk mitigation in advancing large-scale development projects.

“Our support helps bolster lender confidence, mobilise long-term financing, and enable Nigeria to move forward with this strategic infrastructure investment that will strengthen connectivity and support socioeconomic progress.”

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