Reps Approve $516m Loan for Sokoto–Badagry Superhighway

The House of Representatives has approved a $516 million external loan requested by President Bola Tinubu to fund sections of the Sokoto–Badagry Superhighway project.

The approval was granted during plenary in Abuja after the deputy chairman of the House Committee on Aids, Loans and Debts Management, Abdullahi Rasheed, presented the committee’s report.

Tinubu had earlier written to the National Assembly seeking approval for a $516,333,007 syndicated loan from Deutsche Bank AG, backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit.

Senate President Godswill Akpabio defended the borrowing plan, saying: “It is better to borrow for projects and infrastructure so that, at the end of the day, we can repay through the infrastructure.”

The loan will finance sections 1, 1A, and 1B, covering about 120 kilometres in the first phase. The broader project spans 1,000 kilometres, linking Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, from Illela to Badagry.

The facility has a nine-year tenure, including a three-year grace period, with interest pegged at SOFR + 5.3% per annum.

The Federal Government will also provide ₦265 billion in counterpart funding for land acquisition and related costs.

While lawmakers backed the project, critics raised concerns about Nigeria’s rising debt profile.

Former Vice President Atiku Abubakar questioned fiscal discipline, while analyst Seun Onigbinde warned about poorly structured loans.

Data from the Debt Management Office shows debt servicing rose to ₦16 trillion in 2025, up 22.9% from 2024, with external obligations accounting for nearly half, underscoring the growing pressure on Nigeria’s finances.