Reps approve Tinubu’s $516m loan for Sokoto–Badagry highway
The House of Representatives has approved President Bola Ahmed Tinubu’s request to secure a $516,333,700 syndicated loan from Deutsche Bank AG, marking a significant step in the Federal Government’s plan to finance sections of the ambitious Sokoto–Badagry Super Highway project.
The approval was granted during plenary on Tuesday, April 28, 2026, following the presentation and adoption of a report by the House Committee on Aids, Loans and Debt Management.
Legislative approval and loan details
According to official proceedings, lawmakers endorsed the president’s request after reviewing the proposed financing structure, which involves a syndicated facility arranged by Deutsche Bank. The loan totals $516,333,700 and is part of Nigeria’s broader medium-term borrowing plan aimed at funding critical infrastructure.
President Tinubu had earlier written to the National Assembly, seeking approval in line with statutory requirements under the Debt Management Office Act. The request specifically covers financing for Sections 1, 1A, and 1B of the Sokoto–Badagry Super Highway, a flagship project under the administration’s “Renewed Hope Agenda.”
The loan is structured with a tenure of approximately nine years, including a grace period of up to three years, and carries an interest rate benchmarked against the Secured Overnight Financing Rate (SOFR) plus a margin.
Strategic infrastructure project
The Sokoto–Badagry Super Highway is a proposed 1,000-kilometre transport corridor designed to connect Nigeria’s northwestern and southwestern regions. The route is expected to link Sokoto State through Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos States, terminating at Badagry on the Atlantic coast.
Government officials have described the highway as a transformative infrastructure project that will enhance national connectivity, reduce travel time, and improve the movement of goods across key economic corridors. It is also expected to facilitate trade, boost food security, and strengthen economic integration between regions.
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The initial phase of the project to be financed by the approved loan will cover approximately 120 kilometres, focusing on critical segments necessary to kick-start construction.
Financing structure and guarantees
The Federal Government indicated that the syndicated loan would be backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a member of the Islamic Development Bank Group.
In addition to external financing, the government has committed substantial counterpart funding exceeding ₦265 billion to cover land acquisition, compensation, and related infrastructure costs associated with the project.
Analysts note that such blended financing structures—combining external loans with domestic funding and guarantees—are increasingly being used by governments to mitigate risk and attract international lenders to large-scale infrastructure projects.
Parliamentary process and broader borrowing plan
The House’s approval follows earlier steps in the legislative process, including the president’s formal request and committee review. The National Assembly’s role is constitutionally required for external borrowing, ensuring legislative oversight of Nigeria’s debt profile.
The loan request is also consistent with the President’s previously approved borrowing framework, which outlines planned external and domestic loans to finance infrastructure and development initiatives over the medium term.
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In recent years, Nigeria has relied on syndicated loans and multilateral financing to fund major infrastructure projects, including highways, rail lines, and energy initiatives, amid limited fiscal space and growing development needs.
Economic implications
While the approval has been welcomed by proponents of infrastructure development, it also comes against the backdrop of ongoing debates about Nigeria’s debt sustainability. Economists have repeatedly stressed the importance of ensuring that borrowed funds are efficiently deployed to projects that generate economic returns.
Supporters of the Sokoto–Badagry Super Highway argue that the project could significantly reduce logistics costs, improve supply chains, and unlock economic potential in underserved regions, thereby justifying the borrowing.
However, critics caution that careful project execution, transparency, and accountability will be crucial to ensuring value for money and preventing cost overruns.
With legislative approval secured, the Federal Government is expected to proceed with finalising the financing arrangements with Deutsche Bank and initiating disbursement processes for the project.
Construction activities on the initial sections of the highway are anticipated to commence following the completion of procurement, land acquisition, and other preparatory phases.
The approval of the $516 million loan marks another milestone in Nigeria’s infrastructure drive, underscoring the administration’s focus on large-scale projects aimed at reshaping the country’s transport network and boosting economic growth.
