IsDB 2026: ICIEC Backs $626m Lagos-Calabar Coastal Highway Financing to Boost Connectivity, Devt Impact in Nigeria
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- The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) is backing the Lagos-Calabar Coastal Highway financing with $626 million.
- This insurance policy aims to mitigate sovereign risk, facilitating long-term international financing for the crucial infrastructure project.
- The highway is a key component of Nigeria's development agenda, expected to enhance regional integration and economic activity upon completion.
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank Group, has committed $626 million to support the financing of the Lagos-Calabar Coastal Highway-Phase II in Nigeria. This significant backing comes in the form of an insurance policy designed to mitigate sovereign risk, thereby facilitating access to long-term international financing for one of Nigeria's most strategically important transport infrastructure projects.
The agreement, signed on the sidelines of the Islamic Development Bank (IsDB) Group 2026 Annual Meetings in Baku, Azerbaijan, is structured around ICIEC’s Non-Honouring of Sovereign Financial Obligations (NHSFO) insurance policy. This policy provides 95 percent coverage across two tranches: $276 million with a 7-year tenor and $350 million with a 9-year tenor. The Federal Ministry of Finance of Nigeria acts as the borrower, with First Abu Dhabi Bank as the policyholder.
Through this transaction, ICIEC is demonstrating the practical value of Shariah-compliant risk mitigation in advancing large-scale development projects.
ICIEC's CEO, Dr. Khalid Khalafalla, highlighted the practical value of Shariah-compliant risk mitigation in advancing large-scale development projects. He stated that ICIEC's support bolsters lender confidence, mobilizes long-term financing, and enables Nigeria to proceed with this strategic investment. The Lagos-Calabar Coastal Highway Project is a cornerstone of President Bola Tinubu's government's infrastructure development agenda. Upon completion, it is expected to significantly enhance regional integration and mobility, improve the efficient movement of goods and people along the country's coastal regions, catalyze economic activity, reduce logistics costs, and strengthen supply chains.
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.
DistantNews Editorial
Originally published by ThisDay. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.
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