₦airaland Forum

After paying N15 trillion to Chagoury’s company for Lagos-Calabar road, Tinubu secures additional N1.2 trillion loan for same highway

The ministry said the highway reflected a commitment to long-term resilience and efficiency.

The federal government has announced a $747 million loan facility secured to finance Phase 1 Section 1 of the Lagos-Calabar highway.

In a statement on Tuesday, the director of information and public relations at the ministry of finance, Mohammed Manga, said the loan was arranged by Deutsche Bank, stating it was the first syndicated road infrastructure loan of its size in the country.

“The facility is a strong signal of global investor confidence in the country’s reform trajectory and infrastructure pipeline,” the statement said.

It added, “Deutsche Bank acted as Global Coordinator, Initial Mandated Lead Arranger and Bookrunner and participated in the syndicate, alongside other regional and international lenders.”

The ministry further said the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) provided partial political and commercial risk insurance.

According to the ministry, the syndicate includes support from development finance institutions, export credit agencies and international commercial banks—notably First Abu Dhabi Bank, also acting as agent across all facilities and Intercreditor Agent, whose involvement underscores its strong and growing support for Nigeria.

“Other lenders involved are the African Export-Import Bank (“Afrexim”), the Abu Dhabi Exports Office (“ADEX”), the ECOWAS Bank for Investment and Development (“EBID”), Nexent Bank N.V. (formerly known as Credit Europe Bank N.V.) and Zenith Bank (through its UK, Paris and Nigeria offices). The project is structured as an EPC+F (Engineering, Procurement, Construction + Financing) contract awarded to Hitech Construction Company, one of Nigeria’s leading infrastructure firms,” the statement continued.

Noting that the loan structure aimed at a strategic partnership between the government and the private sector, seamlessly aligning technical execution with financing solutions, the ministry said the highway reflected a commitment to long-term resilience and efficiency.

The new loan announcement came months after the federal government awarded the coastal highway to Hitech Construction Company Ltd, a company owned by President Bola Tinubu’s ally Gilbert Chagoury, for over N15 trillion, drawing criticism from Nigerians over the procurement process.

Speaking on the deal, minister of works, Dave Umahi, said the mega project was awarded to Mr Chagoury’s company based on its experience in concrete paving and its successful bid for subsequent project sections.

Mr Umahi noted the contract’s procurement process followed due process, adding the company Mr Chagoury had previously handled the reconstruction of the Oworonshoki-Apapa Road, which demonstrated its capability in concrete road construction.

"The new loan announcement came months after the Tinubu's FG awarded the coastal highway to Hitech Construction Company Ltd,

A company owned by President Bola Tinubu’s ally Gilbert Chagoury, for over N15 trillion. Mr Umahi noted the contract’s procurement process followed due process..... "

JASONjnr:
As far as it's for development.

People criticizing this efforts will likely benefit from it after its completion.

The connection is massive and I applaud the president.

Slow and steady, we will get there....

Putinofrussia:
Some people are just sadists.
Is it Tinubu chop money or for the greater good of the people?
The project will be funded 70% by private entities and 30% govt and later tolled which makes it lasts longer because of the maintenance which is always poor if left for govt.

Callazaman:
Umahi go change cells like emefiele when a new opposition comes in
Thatbwhole road is the greatest fraud in Nigeria history
That money alone will build an industrial city and employ 1000s

Racoon:
Is this one additional overhead cost or what? The kinds of underhand dealings corruption going on in this Tinubu's government will make an average Nigerian shudder in horror by the time all these crooked deals will be exposed for what it is.

Bobloco:
https://gazettengr.com/after-paying-n15-trillion-to-chagourys-company-for-lagos-calabar-road-tinubu-secures-additional-n1-2-trillion-loan-for-same-highway/

Bobloco:
https://gazettengr.com/after-paying-n15-trillion-to-chagourys-company-for-lagos-calabar-road-tinubu-secures-additional-n1-2-trillion-loan-for-same-highway/