The House of Representatives has given approval to President Bola Tinubu’s request to secure a $516,333,007 syndicated loan from Deutsche Bank AG.
Lawmakers took the decision during plenary on Tuesday in Abuja following the presentation of a report by the Deputy Chairman of the House Committee on Aids, Loans, and Debt Management, Abdullahi Rasheed.
The approved funds are expected to go into the construction of key sections of the Sokoto–Badagry Super Highway, one of the major infrastructure projects under the current administration.
In his communication to the National Assembly, President Tinubu explained that the financing would be sourced through a syndicated arrangement led by Deutsche Bank and directed toward sections 1, 1A, and 1B of the project, covering about 120 kilometres.
He urged lawmakers to grant approval in line with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011, to allow the federal government proceed with the financing plan for the specified segments of the highway.
The proposed highway, a flagship project under the Renewed Hope Agenda, is designed to strengthen national connectivity, improve the transportation of goods across major economic corridors, and significantly reduce travel time across the country.
Spanning about 1,000 kilometres, the road will pass through Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos States, linking Illela to Badagry.
The financing structure will include a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), according to the proposal.
The federal government is also expected to contribute over ₦265 billion as counterpart funding, which will cover land acquisition, compensation, and other related infrastructure needs.
The loan arrangement, as outlined, carries a nine-year repayment period with a three-year grace period, while the interest rate is set at the Chicago Mercantile Exchange SOFR plus 5.3 per cent annually.
It was further noted that the Federal Executive Council had already given prior approval for thplanp0nancing plan.