The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a Shariah-based multilateral insurer and part of the Islamic Development Bank Group, has announced its support for the Lagos-Calabar Coastal Highway Project in Nigeria, a landmark infrastructure initiative designed to boost connectivity, trade, and sustainable growth across West Africa.
ICIEC will provide Non-Honoring of Sovereign Financial Obligations (NHSFO) insurance cover for USD 466 million in Islamic financing arranged by Deutsche Bank and First Abu Dhabi Bank for the Federal Government of Nigeria. The facility, which carries a seven-year tenor, is seen as a crucial step in attracting international financing for one of Nigeria’s most ambitious infrastructure projects.
The project covers the construction of a 47.7-kilometre, six-lane coastal highway along the country’s southern corridor. The plan includes a centrally reserved lane designed for a future railway line, creating a multimodal transport system aimed at easing congestion in Lagos, Africa’s most populous city. Once complete, the highway is expected to cut travel times significantly and improve productivity for commuters, logistics providers, and businesses.
Beyond transport benefits, the project is set to deliver substantial socio-economic impact. It is expected to create around 900 direct and 300 indirect jobs, with a strong emphasis on empowering local communities, women, and youth. In addition, 40% of subcontracts will be awarded to Nigerian SMEs, supporting inclusive economic development. Structured training initiatives will also equip workers with new technical skills, improving long-term employment prospects.
Sustainability and environmental responsibility are key aspects of the project. Guided by thorough environmental and social impact assessments, the project will integrate climate-resilient infrastructure, flood prevention measures, sustainable construction methods, and biodiversity protection. These measures support SDG 13 (climate action) while also ensuring that community engagement and compensation programmes safeguard local livelihoods and promote shared prosperity.
The Lagos-Calabar Coastal Highway is part of the ECOWAS Trans-West African Coastal Highway corridor, a strategic transport route that strengthens Nigeria’s role as a gateway to regional markets. It also advances wider objectives under SDG 8 (decent work and economic growth), SDG 9 (resilient infrastructure), and SDG 11 (sustainable cities and communities).
Dr. Khalid Khalafalla, CEO of ICIEC, said: “This project exemplifies how Islamic finance, combined with robust risk mitigation, can drive transformative and inclusive 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. We are proud to contribute to a project that reflects our mission and our unwavering commitment to the Sustainable Development Goals.”
The Lagos-Calabar Coastal Highway marks a significant milestone in Nigeria’s infrastructure agenda and highlights the crucial role of multilateral partnerships and Islamic finance in shaping a connected and prosperous future for West Africa.
