Islamic Insurer Commits $626m to Tinubu’s Lagos-Calabar Coastal Highway Project
The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a Shariah-based multilateral credit and political risk insurer and member of the Islamic Development Bank Group, has announced a significant commitment of $626 million to support the financing of Phase II of Nigeria’s ambitious Lagos-Calabar Coastal Highway project.
The agreement, crucial for advancing a key national infrastructure initiative, was formally signed on the sidelines of the IsDB Group 2026 Annual Meetings in Baku, Azerbaijan, according to a statement on Friday.
ICIEC’s involvement will provide critical risk mitigation for the project, which is considered one of Nigeria’s most strategically significant transport infrastructure developments. The commitment comes in the form of a Non-Honouring of Sovereign Financial Obligations insurance policy.
This policy, structured in favour of First Abu Dhabi Bank as the policyholder with the Federal Ministry of Finance of Nigeria acting as the borrower, offers 95% coverage across two tranches. The first tranche amounts to $276 million with a 7-year tenor, while the second provides $350 million with a 9-year tenor. By mitigating sovereign risk, ICIEC’s participation is pivotal in facilitating access to long-term international financing and ensuring the successful implementation of this landmark project.
The Lagos–Calabar Coastal Highway Project, embarked upon by the President Bola Tinubu administration, is a cornerstone of Nigeria’s broader infrastructure development agenda. Upon its completion, the highway is expected to significantly enhance regional integration and mobility, enabling more efficient movement of goods and people across the country’s coastal regions. This will, in turn, catalyse economic activity, reduce logistics costs, and strengthen supply chains throughout the nation.
Khalid Khalafalla, chief executive officer of ICIEC, underscored the importance of their role: “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.”
