The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) Supports USD 466 Million Islamic Financing for the Lagos-Calabar Coastal Highway Project, Transforming Nigeria’s Infrastructure

 

The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) (https://ICIEC.IsDB.org), a Shariah-based multilateral insurer and member of the Islamic Development Bank Group, is proud to announce its support for the Lagos-Calabar Coastal Highway Project in Nigeria, a landmark initiative aimed at enhancing connectivity, trade, and sustainable development across West Africa.

ICIEC is providing Non-Honoring of Sovereign Financial Obligations (NHSFO) insurance coverage for USD 466 million in Islamic financing extended by Deutsche Bank and First Abu Dhabi Bank to the Federal Government of Nigeria. The facility, with a seven-year tenor, plays a pivotal role in mobilizing international financing for one of Nigeria’s most ambitious infrastructure ventures.

The project involves the construction of a 47.7-kilometer, six-lane coastal highway along Nigeria’s southern corridor, including a centrally reserved lane for a future railway line. This innovative and multimodal approach aims to ease congestion in Lagos—Africa’s most populous city—reduce travel times, and boost productivity for commuters and businesses alike.

Beyond transportation benefits, the project is expected to generate approximately 900 direct and 300 indirect jobs, with a particular focus on empowering local communities, women, and youth. At least 40% of subcontracts are allocated to Nigerian SMEs, reinforcing inclusive economic development. Structured training programs will also equip workers with in-demand technical skills, fostering long-term employability.

Environmental and social responsibility are central to the project’s implementation. Guided by comprehensive environmental and social impact assessments, the project integrates sustainable building practices, climate-resilient infrastructure, flood prevention, and biodiversity conservation—supporting SDG 13 on climate action. Community engagement and compensation plans have been designed to protect livelihoods and promote shared prosperity.

The Lagos-Calabar Coastal Highway is also a strategic component of the ECOWAS Trans-West African Coastal Highway corridor, enhancing Nigeria’s role as a gateway to regional markets and supporting broader goals 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, commented, “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 new chapter in Nigeria’s infrastructure journey and underscores the critical role of multilateral cooperation and Islamic insurance in shaping a prosperous, interconnected future for the region.

Distributed by APO Group on behalf of Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).

Media Contacts:
ICIEC
Email: ICIEC-Communication@isdb.org

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About The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC):
As a member of the Islamic Development Bank (IsDB) Group, ICIEC commenced operations in 1994 to strengthen economic relations between OIC Member States and promote intra-OIC trade and investment by providing credit enhancement and risk mitigation solutions. The Corporation is the only Islamic multilateral insurer in the world and has been at the forefront of delivering a comprehensive suite of de-risking solutions to support cross-border trade and investment for its 50 Member States. ICIEC has maintained its “Aa3” rating with a stable outlook from Moody’s for 17 consecutive years, positioning the Corporation among the leaders in the Credit and Political Risk Insurance (CPRI) industry. Additionally, S&P has reaffirmed ICIEC’s “AA-” rating for the second year with a stable outlook. ICIEC’s resilience is underpinned by its sound underwriting practices, global reinsurance network, and strong risk management framework. Since inception, ICIEC has cumulatively insured over USD 121 billion in trade and investment, supporting key sectors such as energy, manufacturing, infrastructure, healthcare, and agriculture in its member states.

Website: https://ICIEC.IsDB.org