The House of Representatives has officially given the green light to President Bola Tinubu’s request for a $516,333,007 syndicated loan. This financing, to be sourced from Deutsche Bank AG, is earmarked for the initial phases of the ambitious Sokoto–Badagry Superhighway, a cornerstone of the administration’s “Renewed Hope” infrastructure agenda.
The approval, granted during Tuesday’s plenary on April 28, 2026, follows a detailed report by the House Committee on Aids, Loans, and Debt Management.
Financing the “North-West to South-West” Corridor
The approved funds are specifically designated for Sections 1, 1A, and 1B of the highway, covering approximately 120 kilometres of the projected 1,000-kilometre corridor.
Key Financial Details:
- Lender: Syndicated financing led by Deutsche Bank AG.
- Risk Mitigant: Backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
- Loan Terms: A nine-year tenure with a three-year grace period.
- Interest Rate: Benchmarked at the Secured Overnight Financing Rate (SOFR) plus a margin of approximately 5.3%.
- Counterpart Funding: The Federal Government has committed ₦265.5 billion to cover land acquisition, compensation, and ancillary works.
Strategic Impact: Slashing Travel Time
The Sokoto–Badagry Superhighway is designed to be a high-capacity carriageway linking Illela in Sokoto State to Badagry in Lagos State, passing through Kebbi, Niger, Kwara, Oyo, and Ogun.
According to government projections, the completed highway will:
- Reduce Travel Time: Potential reductions from the current 13+ hours to roughly 6 to 7 hours for the full stretch.
- Boost Food Security: By linking northern agricultural “production zones” directly to southwestern markets and seaports, the project aims to reduce post-harvest losses and lower haulage costs.
- Enhance Trade: The corridor serves as a vital economic artery for regional trade and national integration.
Strict Oversight and Accountability
Mindful of Nigeria’s rising debt profile, the House of Representatives attached several “accountability strings” to the approval.
- Quarterly Reporting: The Ministries of Finance, Works, and the Debt Management Office (DMO) are mandated to submit quarterly progress reports on fund utilization.
- Transparent Procurement: Lawmakers emphasized the need for independent audits to ensure the loan delivers maximum “value for money.”
- Legislative Monitoring: Relevant committees will conduct continuous oversight to ensure Sections 1, 1A, and 1B meet international engineering standards.
At a Glance: The Loan Breakdown
| Feature | Information |
| Total Loan Amount | $516,333,007 |
| Primary Lender | Deutsche Bank AG |
| Project Scope | Sokoto–Badagry Superhighway (Sections 1, 1A, 1B) |
| Total Project Distance | ~1,000 km (Initial phase: 120 km) |
| Approval Date | Tuesday, April 28, 2026 |
| Economic Goal | Link NW production hubs to SW ports |