By Halima Abubakar, Abuja
The House of Representatives on Tuesday approved President Bola Tinubu’s request to borrow $516.3 million syndicated loan facility from Deutsche Bank AG to finance a key segment of the Sokoto–Badagry Superhighway project.
In a letter dated April 20, 2026, and addressed to the Speaker of the House of Representatives, Tajudeen Abbas, the President sought legislative resolution to secure the funding in line with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011.
The requested financing is designated for Section 1, Phase 1A and 1B of the ambitious highway project, covering a 120-kilometre stretch.
Tinubu also urged lawmakers to approve the inclusion of the loan in Nigeria’s borrowing plan, noting that the facility had already received the backing of the Federal Executive Council.
According to the President, the Sokoto–Badagry Superhighway is a flagship initiative under his administration’s Renewed Hope Agenda, aimed at transforming transportation and trade connectivity across the country.
He explained that the project, spanning approximately 1,000 kilometres, would link several states including Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos, creating a major inland corridor from Illela to Badagry.
“The project is designed to improve north-south connectivity, enhance safety, and boost overall network performance,” the President stated.
He added that the highway would significantly reduce logistics costs and travel time, while strengthening trade, food security, and national integration by connecting production hubs with markets and ports.
The financing structure, as outlined in the letter, includes a $516.3 million syndicated loan to be secured through Deutsche Bank, with partial risk guarantee support from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), a subsidiary of the Islamic Development Bank.
The Federal Government is also expected to provide counterpart funding of over N265.5 billion to cover land acquisition, compensation, and related infrastructure.
Tinubu further disclosed that the loan would have a tenure of nine years, including a grace period of up to three years, with an interest rate benchmarked at the Chicago Mercantile Exchange Secured Overnight Financing Rate (SOFR) plus 5.35 percent per annum.
While appealing for swift legislative action, the President expressed confidence that the project would deliver long-term economic benefits, including improved trade routes and future integration with rail infrastructure through a reserved central corridor.
He concluded by urging the House to expedite its resolution to enable timely execution of the project.
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