By Gloria Ikibah
The House of Representatives has given the green light to President Bola Ahmed Tinubu’s request to secure more than $516 million in external financing, paving the way for a major infrastructure push under the current administration.
The approval was granted during Tuesday’s plenary in Abuja following the consideration of a report presented by Abdullahi Rasheed, deputy chairman of the House Committee on Aids, Loans and Debt Management.
The funding, arranged through a syndicated facility led by Deutsche Bank AG, is earmarked for the development of key sections of the ambitious Sokoto–Badagry Super Highway project.
The proposed financing will specifically support sections 1, 1A and 1B of the road, covering roughly 120 kilometres in the first phase of construction. The request was submitted to the National Assembly in line with statutory provisions governing public borrowing.
The highway scheme, a centrepiece of the administration’s economic agenda, is designed to improve connectivity across several states and streamline the movement of goods along critical trade routes. Stretching an estimated 1,000 kilometres, the corridor is expected to link Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos, connecting Illela in the north to Badagry on the Atlantic coast.
As part of the financing structure, the loan is backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, providing an additional layer of assurance for lenders.
The Federal Government is also expected to commit substantial counterpart funding exceeding ₦265 billion to cover land acquisition, compensation and associated infrastructure costs.
The borrowing arrangement is structured over a nine-year period, including a three-year grace window, with interest tied to the Chicago Mercantile Exchange SOFR benchmark plus a margin of 5.3 per cent annually.
The Federal Executive Council had earlier endorsed the financing plan, clearing the path for legislative approval and the next phase of implementation.