The House of Representatives has approved a request by Bola Tinubu to secure a $516.3 million external loan for the construction of sections of the Sokoto–Badagry superhighway.
The approval followed the presentation of a report by the House Committee on Aids, Loans and Debt Management during plenary on Tuesday.
The proposed 1,000-kilometre highway will connect Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos states, stretching from Illela in Sokoto State to Badagry in Lagos. The project is expected to enhance connectivity between the North-West and South-West and create a major economic corridor across the country.
The president’s request was conveyed in a letter read by Speaker Abbas Tajudeen. Lawmakers later considered and adopted the committee’s recommendations before granting final approval.
Presenting the report, the committee’s deputy chairman, Abdullahi El-Rasheed, urged lawmakers to approve financing for a 120-kilometre section of the road.
The House endorsed all recommendations, including the loan request and its inclusion in the federal government’s rolling borrowing plan.
The financing package includes a partial guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, with a nine-year tenor, a moratorium of up to three years, and an interest rate tied to CME SOFR plus 5.35 per cent annually.
To ensure accountability, lawmakers directed strict oversight of the loan, mandating quarterly reports from the Federal Ministry of Finance, the Debt Management Office, and the Federal Ministry of Works on disbursement and project execution. They also required all financing agreements to be submitted to the National Assembly within 30 days of completion.
Additional measures approved include competitive procurement processes, independent audits, and periodic evaluations of project milestones.
The approval comes amid ongoing concerns over Nigeria’s rising debt profile, with authorities maintaining that external borrowing remains necessary to fund critical infrastructure and reduce pressure on domestic financing.
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