Reps Greenlight $516.3 Million Loan for Sokoto-Badagry Superhighway

The House of Representatives has given its nod to a $516.3 million syndicated loan facility from Deutsche Bank AG, intended for the development of Section 1 (Phases 1A and 1B) of the proposed Sokoto-Badagry Superhighway. This approval was granted during a plenary session following the acceptance of a report submitted by the House Committee on Aids, Loans and Debt Management.

During the presentation of the report, Abubakar Hassan Nalaraba, the committee chairman, advocated for the lawmakers' endorsement of the financing proposal for this specific 120-kilometre segment of the extensive road project.

Earlier, Abdullahi El-Rashid, a committee member representing Dukku/Nafada Federal Constituency in Gombe State, had moved a motion for the report's consideration. He emphasized the critical role the highway plays in fostering national economic integration.

Bello Isah Ambarura, representing Illela/Gwadabawa Federal Constituency in Sokoto State, seconded the motion.

The House then convened as the Committee of Supply to deliberate on the committee's recommendations, examining and approving them clause by clause before returning to plenary for the final adoption.

Lawmakers approved all five recommendations presented, which included the loan facility itself and its integration into the Federal Government's ongoing borrowing plan.

Further details of the approved financing structure include a partial guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit. The loan features a nine-year repayment period, with a moratorium of up to three years, and an interest rate benchmarked at CME SOFR plus an annual 5.35 per cent.

To ensure accountability, the House mandated rigorous legislative oversight. This includes requiring the Federal Ministry of Finance, the Debt Management Office, and the Federal Ministry of Works to submit quarterly reports detailing project execution and fund disbursement.

The lawmakers also stipulated that all finalised financing agreements must be presented to the National Assembly within 30 days of the financial close. Continuous monitoring by the relevant committees was also instructed.

In an effort to guarantee transparency and ensure the optimal use of funds, provisions were also approved for competitive bidding processes, independent technical and financial audits, and regular assessments of the project's progress against its milestones.

This legislative approval follows a formal request made by President Bola Ahmed Tinubu in April 2026, seeking the National Assembly's authorisation for the external loan.

In his earlier communication, the President stated that the loan would facilitate the funding of Sections 1, Phase 1A and 1B of the highway. This road forms part of a larger 1,000-kilometre corridor designed to connect Nigeria's North-West geopolitical zone with the South-West, traversing Sokoto, Kebbi, Niger, Kwara, Oyo, and Ogun states before reaching Badagry in Lagos.

The proposed financing is a component of the Federal Government's medium-term borrowing strategy, offering a nine-year tenor with a grace period extending up to three years, backed by credit assurances from international financial entities.