The House of Representatives on Tuesday approved the request of President Bola Ahmed Tinubu to obtain a fresh loan of $516,333,007 from Deutsche Bank AG for the construction of the Sokoto-Badagry Superhighway Project, Section 1 Phase IA and IB (120.00 km).
The approval of the loan followed the presentation and consideration of a report from the House Committee on Aids, Loans and Debt Management, recommending the approval of the syndicated financing from Deutsche Bank AG for the project.
The Sokoto-Badagry Superhighway is a flagship infrastructure project of the Renewed Hope Agenda, designed to open Nigeria’s north-west-south-west axis through the construction of an approximately 1,000 km inland dual carriageway linking Sokoto State, Kebbi State, Niger State, Kwara State, Oyo State, Ogun State, and Lagos State, running from Illela to Badagry.
The House also approved the inclusion of the project and its financing into the Federal Government’s Rolling Borrowing Plan, as well as the financing structure and terms, which include partial guarantee cover by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
The loan is with a tenure of nine years, with up to a three-year grace period, an interest rate benchmarked at CME SOFR + 5.35% per annum, and strict legislative oversight, including quarterly reporting by the Federal Ministry of Finance, the Debt Management Office (DMO), and the Ministry of Works on project implementation and disbursement.
The approval included the submission of executed financing agreements to the National Assembly within 30 days of financial close; continuous monitoring by relevant committees; ensuring transparency and value for money through competitive and transparent procurement processes; independent technical and financial audits; and periodic evaluation of project milestones and outcomes.
The Speaker, Tajudeen Abbas, had earlier read a letter from the President to the House requesting the sum for the said project.
The letter, which was addressed to the Speaker, was titled, ‘Request for the Resolution of the National Assembly to approve the USD 516,333,007 syndicated financing from Deutsche Bank AG for the construction of the Sokoto-Badagry Superhighway Project, Section 1 Phase IA and IB.’
The President said that the purpose of the letter, dated April 20, 2026, is to request the House of Representatives for the Resolution of the National Assembly (NASS), pursuant to the provisions of Sections 16 and 21 of the Debt Management Office (Establishment, Etc.) Act, 2011, for the following:
The President said it was for the approval of the syndicated financing from Deutsche Bank AG in the sum of USD 516,333,007 (Five hundred and sixteen million, three hundred and thirty-three thousand and seven United States dollars only) for the construction of the Sokoto-Badagry Superhighway Project, Section 1 Phase IA and IB (Ch. 00+000 – Ch. 120+000 km) 120.00 km project, as well as the approval of the inclusion of the financing in the borrowing plan.
The letter reads, ‘The House of Representatives is invited to note that the Sokoto-Badagry Superhighway is a flagship infrastructure project of the Renewed Hope Agenda, designed to open Nigeria’s north-west-south-west axis through the construction of an approximately 1,000 km inland dual carriageway linking Sokoto State, Kebbi State, Niger State, Kwara State, Oyo State, Ogun State, and Lagos State, running from Illela to Badagry.
‘The project will:
i. improve north-south connectivity, safety, and network performance on the corridor;
ii. reduce logistics costs and travel times by providing a continuous high-capacity expressway standard link to downstream markets;
iii. strengthen trade facilitation, food security, and national cohesion through improved access between production zones, markets, and ports; and
iv. safeguard long-term intermodal flexibility by reserving the central median for future rail integration and accommodating utility corridors.
‘The proposed financing arrangement consists of:
a. syndicated financing: USD 516,333,007 to be secured via Deutsche Bank AG, with a partial guarantee cover from ICIEC (Islamic Development Bank insurance arm);
b. Federal Government of Nigeria counterpart funding: NGN 265,542,689,569.54 as part of land acquisition, compensation, and support infrastructure, etc.;
c. tenor and interest rate: a tenor of nine years with a grace period of up to three years (inclusive), not exceeding the applicable Chicago Mercantile Exchange (CME) SOFR + 5.35% per annum.
‘The proposal is for the House of Representatives to approve the financing arrangement and terms as set out in paragraph 3 above, which have also been approved by the Federal Executive Council.
‘Based on the foregoing, I wish to request for the Resolution of the National Assembly to:
i. approve the syndicated financing from Deutsche Bank AG in the sum of USD 516,333,007 (Five hundred and sixteen million, three hundred and thirty-three thousand and seven United States dollars only) for the construction of the Sokoto-Badagry Superhighway Project, Section 1 Phase IA and IB (Ch. 00+000 – Ch. 120+000 km) 120.00 km project;
ii. approve the inclusion of the financing in the borrowing plan. A specimen of the resolution required is attached as Annexure I.
‘While I look forward to the timely issuance of the resolution by the House of Representatives, please accept, Rt. Honourable Speaker, the assurances of my highest regards.’