Nigeria’s House of Representatives has approved a $516.3 million syndicated loan requested by President Bola Ahmed Tinubu to finance a key segment of the Sokoto–Badagry Superhighway.
The loan, to be sourced from Deutsche Bank AG, will fund Section 1 (Phase 1A and 1B) of the ambitious infrastructure project. The approval followed the adoption of a report presented during plenary by the House Committee on Aids, Loans and Debt Management.
Presenting the report, Committee Chairman Abubakar Hassan Nalaraba urged lawmakers to support the funding request, emphasizing the importance of the 120-kilometre stretch in boosting connectivity and economic activity.
The motion for consideration was moved by Abdullahi El-Rashid, representing Dukku/Nafada Federal Constituency in Gombe State, and seconded by Bello Isah Ambarura of Illela/Gwadabawa Federal Constituency in Sokoto State.
Lawmakers subsequently convened as a Committee of Supply, where they reviewed and approved the recommendations clause-by-clause before giving final endorsement during plenary.
The House ratified all five recommendations, including the integration of the loan into the federal government’s rolling borrowing plan. The financing package features a partial guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, a nine-year repayment term with up to three years’ moratorium, and an interest rate pegged to CME SOFR plus 5.35 percent annually.
To ensure transparency and accountability, the House mandated strict oversight measures. Relevant agencies—including the Federal Ministry of Finance, the Debt Management Office, and the Federal Ministry of Works—are required to submit quarterly reports on fund disbursement and project progress.
Lawmakers also directed that all finalized agreements be submitted to the National Assembly within 30 days of financial closure, alongside continuous monitoring by appropriate committees. Additional provisions include competitive procurement processes, independent audits, and periodic evaluations of project milestones.
The approval follows a formal request submitted by President Tinubu in April 2026, seeking legislative backing for the external borrowing.
The Sokoto–Badagry Superhighway is part of a broader 1,000-kilometre corridor designed to link Nigeria’s North-West to the South-West, passing through multiple states before terminating in Badagry, Lagos. The project is expected to enhance trade, mobility, and regional integration across the country.
