The House of Representatives has approved a $516.3 million syndicated loan from Deutsche Bank AG to finance Section 1 (Phase 1A and 1B) of the Sokoto–Badagry Superhighway project. The approval was reached on Tuesday after lawmakers adopted the report of the House Committee on Aids, Loans and Debt Management during plenary in Abuja. The decision moves forward one of Nigeria’s most ambitious road infrastructure plans linking the northern and southern regions.
Committee Pushes Strategic Economic Justification
Presenting the report, Committee Chairman Abubakar Hassan Nalaraba urged lawmakers to support the financing request for the 120-kilometre segment of the project. He stressed that the highway remains central to improving national connectivity and boosting economic integration across regions.
The motion for consideration was moved by Abdullahi El-Rashid of Dukku/Nafada Federal Constituency in Gombe State and seconded by Bello Isah Ambarura of Illela/Gwadabawa Federal Constituency in Sokoto State. Lawmakers described the project as critical to long-term infrastructure development and trade expansion.
Clause-by-Clause Approval in Committee of Supply
The House later dissolved into the Committee of Supply, where the loan proposal was reviewed clause-by-clause before final adoption. Lawmakers approved all five recommendations attached to the request, including its inclusion in the Federal Government’s rolling borrowing plan.
They also endorsed the financing structure, which includes a partial guarantee by the Islamic Corporation for the Insurance of Investment and Export Credit. The facility carries a nine-year repayment tenor with a moratorium of up to three years and an interest rate benchmarked at CME SOFR plus 5.35 per cent annually.
Strict Oversight Measures Attached to Approval
As part of accountability safeguards, the House mandated quarterly reporting from the Federal Ministry of Finance, the Debt Management Office, and the Federal Ministry of Works on project execution and fund utilisation. Lawmakers also insisted that all financing agreements must be submitted to the National Assembly within 30 days of financial close.
The approval further included provisions for competitive procurement processes, independent technical and financial audits, and periodic assessment of project milestones to ensure transparency and value for money in implementation.
Tinubu’s Request and National Corridor Vision
The approval follows an earlier request by President Bola Ahmed Tinubu in April 2026, seeking legislative backing for the external loan facility. In his letter to the National Assembly, the President said the funds would support Sections 1, Phase 1A and 1B of the Sokoto–Badagry Superhighway.
The project forms part of a broader 1,000-kilometre transport corridor designed to link Nigeria’s North-West to the South-West, passing through Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and terminating in Badagry, Lagos State. The Federal Government says the corridor is expected to strengthen trade routes and improve regional connectivity.
Oversight Pressure as Borrowing Plan Advances
While the approval marks progress for the flagship infrastructure project, lawmakers have stressed strict monitoring to prevent misuse of funds and ensure timely delivery. Attention now shifts to implementation agencies and financial institutions as Nigeria deepens its external borrowing strategy for major capital projects.
The outcome is expected to intensify public scrutiny over debt sustainability, infrastructure delivery, and transparency in the execution of large-scale federal projects.