FAB backs $1bn funding for Nigerian coastal highway

The UAE’s First Abu Dhabi Bank (FAB) and the African Export-Import Bank (Afreximbank) are jointly supplying over $1 billion in funding for the construction of a major road infrastructure project in Nigeria.

The Abu Dhabi-listed lender and Afreximbank will provide $626 million and $500 million, respectively, to build section two of the first phase of the Lagos-Calabar coastal highway, which intends to enhance national trade and build logistics connectivity, Nigerian President Bola Tinubu said in a statement.

The new section will cover 56km, connecting Eleko in Lekki to Ode-Omi, an economic corridor in the West African nation. The financing follows the earlier closing of $747 million in funding for section one of the first phase.

Hitech Construction Company is building the project, the statement said.

In September AGBI reported that Africa was emerging as a target for Gulf investors as sovereign funds and state businesses look to broaden their portfolios away from oil and gas.

Further reading:

• Why Africa has become Gulf investors’ latest hotspot
• It’s time Gulf capital flowed into Africa’s water sector
• A new kind of Gulf investment: Qatar’s $100bn Africa play

“Africa is seen not only as a largely untapped market but as a region rich in natural resources and is well placed to receive GCC investment,” said Kristian Coates Ulrichsen, co-director of the Baker Institute’s Middle East Energy Roundtable.

The UAE remains an active investor across Africa, with state-linked companies such as Dubai Investments, AD Ports and Masdar expanding rapidly.

FAB stock, which trades on the Abu Dhabi Securities Exchange, closed 0.5 percent higher at AED17.58 on Friday. The shares have gained 31 percent so far this year.