The House of Representatives has given its approval to President Bola Ahmed Tinubu's request for a $516.3 million syndicated loan. The funds will be used to finance Section 1 (Phase 1A and 1B) of the Sokoto–Badagry Superhighway. The decision was made on Tuesday after lawmakers adopted a report from the House Committee on Aids, Loans and Debt Management during plenary.
Committee Report and Debate
Abubakar Hassan Nalaraba, chairman of the committee, presented the report and urged fellow lawmakers to endorse the request. He described the 120-kilometre stretch as critical to national development and connectivity. Earlier, Abdullahi El-Rashid, a committee member representing Dukku/Nafada in Gombe, moved the motion for consideration of the report. He emphasized the strategic importance of the project for economic integration. The motion was seconded by Bello Isah Ambarura, who represents Illela/Gwadabawa in Sokoto.
Approval and Conditions
The House then resolved into the Committee of Supply, where the report was considered clause by clause. All five recommendations were approved before the final adoption in plenary. Lawmakers endorsed the $516.3 million facility from Deutsche Bank AG and approved its inclusion in the Federal Government's rolling borrowing plan. They also backed the financing structure, which includes a partial guarantee by the Islamic Corporation for the Insurance of Investment and Export Credit. The loan has a nine-year tenor with up to three years' moratorium, and an interest rate benchmarked at CME SOFR plus 5.35 per cent per annum.
To ensure accountability, the House mandated strict legislative oversight. It directed the Federal Ministry of Finance, the Debt Management Office, and the Federal Ministry of Works to submit quarterly reports on disbursement and project implementation. Additionally, all executed financing agreements must be transmitted to the National Assembly within 30 days of financial close. Relevant committees are to carry out continuous monitoring. Provisions were also made for competitive procurement processes, independent technical and financial audits, and periodic evaluation of project milestones to ensure transparency and value for money.
Presidential Request
The approval followed a request by President Tinubu in a letter dated April 20, 2026, addressed to Speaker Tajudeen Abbas. In the correspondence, the President stated that the facility would fund Sections 1 (Phase 1A and 1B) of the highway. This is part of a broader 1,000-kilometre corridor linking Nigeria's North-West to the South-West. The route stretches from Sokoto through Kebbi, Niger, Kwara, Oyo, and Ogun states to Badagry in Lagos State. Tinubu described the project as a flagship initiative under the administration's Renewed Hope Agenda. He said it aims to improve connectivity, reduce travel time and logistics costs, enhance trade and food security, and strengthen national cohesion. He added that the highway would also accommodate future rail integration and utility infrastructure. The financing plan had already received approval from the Federal Executive Council.
