Nigeria Secures $652 Million Loan for Strategic Road Project

Nigeria’s Federal Executive Council has approved a $652 million financing package from the China Exim Bank for the construction of a major road project aimed at improving the movement of goods from the Lekki port and refinery corridor to various southern states.

The announcement was made by the Minister of Works, David Umahi, following a council meeting chaired by President Bola Ahmed Tinubu on Monday.

According to Umahi, the project will serve as a crucial evacuation route from the Lekki Deep Sea Port, the Dangote Petroleum Refinery — Africa’s largest refinery with a capacity of 650,000 barrels per day — and its neighboring fertilizer plant. The road is expected to link up with transport networks across at least 12 southern states, enhancing the distribution of refined petroleum products and industrial goods.

Boosting Infrastructure with Foreign Support

This project is part of Nigeria’s broader strategy to modernize its infrastructure through strategic foreign partnerships. China has remained a key player in Nigeria’s infrastructure development, financing numerous projects in the power, rail, and road sectors.

Nigeria’s financial ties with China continue to deepen, with the Asian nation currently holding over $5 billion of Nigeria’s external debt, according to recent figures from the Debt Management Office.

The newly approved loan is anticipated to ease congestion around Lagos — Nigeria’s commercial capital — and strengthen connectivity between key economic hubs in the country’s south.