Reps Approve Tinubu’s $516.3 Million Loan Request For Sokoto–Badagry Super Highway

The House of Representatives on Tuesday approved President Bola Ahmed Tinubu’s request to secure a $516.3 million syndicated loan from Deutsche Bank AG to fund sections of the proposed Sokoto–Badagry Super Highway.

The approval was granted during plenary 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 loan, valued at $516,333,007, is expected to finance Sections 1, 1A, and 1B of the highway project, covering approximately 120 kilometres of the road corridor.

President Tinubu had earlier written to the National Assembly seeking legislative approval in line with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011, to enable the Federal Government access the facility.

According to the President, the funding arrangement will be sourced through a syndicated financing structure by Deutsche Bank and backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).

Tinubu explained that the Federal Government would also provide counterpart funding of over ₦265 billion to cover land acquisition, compensation, and related infrastructure costs tied to the project.

He stated that the loan facility is structured for a nine-year repayment period, including a three-year grace window, with an interest rate pegged at the Chicago Mercantile Exchange Secured Overnight Financing Rate (SOFR) plus 5.3 per cent annually.

The Sokoto–Badagry Super Highway is one of the flagship infrastructure projects under Tinubu’s Renewed Hope Agenda and is aimed at improving national connectivity, easing the movement of goods, and reducing travel time across major economic corridors.

The 1,000-kilometre road project is expected to connect Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, stretching from Illela in Sokoto State to Badagry in Lagos.

The Federal Executive Council had earlier approved the financing plan before its presentation to the lawmakers for legislative endorsement.