KEY POINTS
- The House of Representatives approved President Tinubu’s $516.3 million loan request from Deutsche Bank.
- Funds will support key sections of the Sokoto–Badagry Super Highway project.
- The 1,000km road will connect seven states, boosting trade and national connectivity.
Nigeria’s House of Representatives has approved President Bola Ahmed Tinubu’s request to secure a $516.3 million loan from Deutsche Bank AG.
The approval of the loan was granted during plenary in Abuja on Tuesday after lawmakers reviewed and adopted a report presented by Abdullahi Rasheed, Deputy Chairman of the House Committee on Aids, Loans, and Debt Management.
The loan will be used to finance Sections 1, 1A, and 1B of the Sokoto–Badagry Super Highway project, covering approximately 120 kilometres.
This highway is a major infrastructure initiative under the administration’s Renewed Hope Agenda, aimed at improving transportation, boosting trade, and enhancing connectivity across Nigeria.
Project to Link Seven States Across Nigeria
The proposed 1,000-kilometre highway will connect several states including Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos—stretching from Illela in the northwest to Badagry in the southwest.
According to the president, the financing from the loan will be supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, while the Federal Government will provide over ₦265 billion as counterpart funding for land acquisition, compensation, and related infrastructure.
The loan is structured over a nine-year period, including a three-year grace window, with an interest rate tied to the Secured Overnight Financing Rate (SOFR) plus 5.3 percent annually.
The financing plan had earlier received approval from the Federal Executive Council (FEC), clearing the way for legislative endorsement.