Islamic Finance Institution Insures $626m Financing For Lagos-Calabar Coastal Highway

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

ICIEC, a Shariah-compliant multilateral credit and political risk insurer and a member of the Islamic Development Bank (IsDB) Group, announced the commitment in a statement issued on Friday.

The agreement was signed on the sidelines of the IsDB Group’s 2026 Annual Meeting held in Baku, Azerbaijan, from June 16 to 19.

According to ICIEC, the insurance support is aimed at facilitating financing for one of Nigeria’s most significant transport infrastructure projects, which is expected to improve connectivity and boost economic activities along the country’s coastal corridor.

“The Lagos–Calabar coastal highway project is a key component of Nigeria’s broader infrastructure development agenda,” the organisation said, adding that the completed project would enhance regional integration, improve movement of goods and people, reduce logistics costs and strengthen supply chains.

The transaction is backed by ICIEC’s Non-Honouring of Sovereign Financial Obligations (NHSFO) insurance policy, structured in favour of First Abu Dhabi Bank as the policyholder, while Nigeria’s Federal Ministry of Finance serves as the borrower.

The policy provides 95 per cent coverage across two financing tranches — $276 million with a seven-year repayment period and $350 million with a nine-year tenor.

ICIEC said the risk mitigation support would help attract long-term international financing by reducing concerns associated with sovereign financial obligations and supporting the successful execution of the highway project.

The Chief Executive Officer of ICIEC, Khalid Khalafalla, said the organisation’s involvement demonstrated the role of Shariah-compliant risk solutions in supporting large-scale development initiatives.

He added that the support would strengthen lender confidence, mobilise long-term investment and enable Nigeria to advance a strategic infrastructure project that would contribute to economic growth and improved connectivity.

The Lagos–Calabar coastal highway is part of the Federal Government’s infrastructure programme aimed at improving transportation links across Nigeria’s coastal states and facilitating trade and mobility.