Reps approve Tinubu’s $516m external loan request

The House of Representatives has approved a $516.33 million external borrowing request by President Bola Tinubu for the construction of a section of the Sokoto–Badagry Superhighway.

The approval followed the consideration of a report presented by the House Committee on Aids, Loans and Debts Management, chaired by Abubakar Nalaraba. The president had written to the National Assembly last week seeking expeditious consideration of the loan request.

The House, sitting in the Committee of Supply on Tuesday, approved the request for a syndicated financing facility from Deutsche Bank AG to support the construction of Section 1, Phase 1A and 1B of the highway project, covering 120 kilometres.

The House specifically approved the sum of $516,333,007 for the project and backed its inclusion in the federal government’s rolling borrowing plan, effectively integrating the facility into Nigeria’s broader debt framework.

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Details of the financing structure show the loan will carry a tenor of nine years, including a grace period of up to three years. The interest rate is benchmarked at CME SOFR plus 5.35% per annum, reflecting prevailing global borrowing costs.

The facility will also be partially guaranteed by the Islamic Corporation for the Insurance of Investment and Export Credit, a move expected to reduce lender risk and potentially improve financing terms.

Lawmakers, however, tied the approval to a series of conditions. The House mandated strict legislative oversight of the project, requiring quarterly reports from the Federal Ministry of Finance, the Debt Management Office, and the Ministry of Works on implementation progress and fund disbursement.

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It also directed that all executed financing agreements be submitted to the National Assembly within 30 days of financial close, alongside continuous monitoring by relevant committees.

To address concerns over cost efficiency and governance, the House further insisted on competitive and transparent procurement processes, independent technical and financial audits, and periodic evaluations of project milestones and outcomes to ensure value for money.

The Sokoto–Badagry Superhighway is one of the federal government’s ambitious road projects, designed to connect Nigeria’s north-western and south-western corridors, improve logistics, and stimulate trade across multiple states.