The House of Representatives of Nigeria has approved President Bola Ahmed Tinubu’s request for a $516.3 million syndicated loan from Deutsche Bank AG to finance Section 1 of the Sokoto–Badagry Superhighway project.
The approval was granted during Tuesday’s plenary following the adoption of a report presented by the House Committee on Aids, Loans and Debt Management.
Presenting the report, committee chairman Abubakar Hassan Nalaraba urged lawmakers to endorse the funding request for the 120-kilometre stretch of the project.
Earlier, Abdullahi El-Rashid, representing Dukku/Nafada Federal Constituency in Gombe State, moved the motion for consideration of the report, describing the highway as vital to national economic integration.
The motion was seconded by Bello Isah Ambarura, who represents Illela/Gwadabawa Federal Constituency of Sokoto State.
Lawmakers later dissolved into the Committee of Supply, where the recommendations were considered and approved clause-by-clause before final adoption in plenary.
The House approved all five recommendations contained in the report, including the inclusion of the facility in the Federal Government’s rolling borrowing plan.
Lawmakers also endorsed the financing structure, which includes a partial guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, a nine-year repayment tenor with up to three years’ moratorium, and an interest rate pegged at CME SOFR plus 5.35 per cent annually.
As part of accountability measures, the House directed the Federal Ministry of Finance, the Debt Management Office, and the Federal Ministry of Works to submit quarterly reports on project implementation and loan disbursement.
The lawmakers further ordered that all executed financing agreements be transmitted to the National Assembly within 30 days of financial close, while relevant committees were mandated to maintain oversight of the project.
To ensure transparency and value for money, the House also approved provisions for competitive procurement processes, independent technical and financial audits, and regular evaluation of project milestones.
President Tinubu had earlier written to the National Assembly seeking approval for the loan facility to support Sections 1, Phase 1A and 1B of the 1,000-kilometre Sokoto–Badagry corridor.
The highway project is expected to link states across the North-West and South-West, stretching from Sokoto through Kebbi, Niger, Kwara, Oyo and Ogun states to Badagry in Lagos.
