ICIEC backs Islamic financing for Lagos-Calabar coastal highway

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) has announced its support for the Lagos-Calabar Coastal Highway Project in Nigeria through USD 466 million in Islamic financing, marking a major step in strengthening West Africa’s infrastructure network.

ICIEC, a Shariah-based multilateral insurer and a member of the Islamic Development Bank Group, is providing Non-Honouring of Sovereign Financial Obligations (NHSFO) insurance coverage for the financing, which has been extended by Deutsche Bank and First Abu Dhabi Bank to the Federal Government of Nigeria. The seven-year facility aims to mobilise international investment for one of Nigeria’s most ambitious transport projects.

The project involves building a 47.7-kilometre, six-lane coastal highway along Nigeria’s southern corridor. It includes a central lane reserved for a future railway line, designed to ease congestion in Lagos, cut travel time, and improve productivity for commuters and businesses.

In addition to improving transport, the project will create around 900 direct and 300 indirect jobs, with a focus on empowering local communities, women, and young people. About 40% of the subcontracts are assigned to Nigerian small and medium-sized enterprises, supporting inclusive economic growth. Training programmes will also help workers gain technical skills to improve long-term employment prospects.

Environmental and social responsibility form a key part of the project’s approach. Based on detailed environmental and social impact assessments, the plan includes sustainable construction methods, climate-resilient design, flood prevention measures, and biodiversity protection. These initiatives align with the United Nations Sustainable Development Goal (SDG) 13 on climate action. Community engagement and compensation plans have also been included to protect livelihoods and ensure shared prosperity.

The Lagos-Calabar Coastal Highway is part of the wider ECOWAS Trans-West African Coastal Highway corridor, which strengthens Nigeria’s position as a gateway to regional trade. It also supports SDG 8 on decent work, SDG 9 on resilient infrastructure, and SDG 11 on sustainable cities and communities.

Dr Khalid Khalafalla, CEO of ICIEC, said the project shows how Islamic finance and risk mitigation can support sustainable 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,” he said.

The Lagos-Calabar Coastal Highway stands as a major milestone in Nigeria’s infrastructure development and highlights the power of regional cooperation and Islamic finance in driving Africa’s growth and connectivity.