Reps Approve $516Million Loan for Sokoto–Badagry Road

The House of Representatives has approved President Bola Tinubu’s request to secure $516,333,007 in syndicated financing from Deutsche Bank AG.

The approval was granted during plenary on Tuesday in Abuja following the presentation of a report by the Deputy Chairman of the House Committee on Aids, Loans, and Debt Management, Abdullahi Rasheed.

The funds are intended to support the construction of sections of the Sokoto–Badagry Super Highway.

In his correspondence with lawmakers, the President sought approval from Deutsche Bank for a loan facility to finance key portions of the project.

He explained that the funding would cover Sections 1, 1A, and 1B of the highway, spanning approximately 120 kilometres.

The request was made in accordance with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011, to enable the Federal Government to access the financing for Sections 1, Phase 1A, and Phase 1B of the project.

The Sokoto–Badagry Super Highway is a flagship project under the administration’s Renewed Hope Agenda, aimed at improving national connectivity, facilitating the movement of goods across major economic corridors, and significantly reducing travel time.

The 1,000-kilometre road will link several states, including Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos, connecting Illela to Badagry.

According to the President, the financing arrangement will be supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).

He added that the Nigerian Government will provide counterpart funding exceeding ₦265 billion for land acquisition, compensation, and related infrastructure.

The loan is structured over a nine-year period, with a three-year grace period, and carries an interest rate tied to the Chicago Mercantile Exchange SOFR plus 5.3 per cent per annum.

The Federal Executive Council had earlier approved the financing plan.