Nigeria’s House of Representatives on Tuesday approved the request of President Bola Ahmed Tinubu to acquire a loan of $516,333,007 from the Dutch bank for the construction of the Sokoto-Badagry Superhighway.
Furthermore, the approval of the loan came after the presentation and consideration of a report from the House Committee on Aids, Loans and Debts Management recommending the approval of the syndicated financing from Deutsche Bank Ag for the Construction of the Sokoto-Badagry Superhighway project Section 1 Phase 1A and 1B”, spanning about 120.00km.
The Project to be Part of Federal Government’s Rolling Borrowing Plan
Additionally, the House approved the inclusion of the project and it’s funding into the Federal Government’s Rolling Borrowing Plan as well as the financing structure and terms which include partial guarantee covers by Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
Similar Projects
Also, other than this highway project, Nigeria is also developing the Lagos-Calabar Coastal Highway. These projects will boost connectivity and improve the overall road infrastructure in the country by offering high-quality road networks.
Details About the Loan
The loan is with a tenure of 9 years with up to 3 years grace period. Its interest rate is benchmarked at CME SOFR + 5.35% per annum and strict legislative oversight. Furthermore, this is inclusive of quarterly reporting by the Federal Ministry of Finance, DMO, and Ministry of Works on project implementation and disbursement.
Lastly, the approval included submission of executed financing agreements to the National Assembly within 30 days of financial close; continuous monitoring by relevant Committees. Also, this serves to ensure transparency and value for money, through competitive and transparent procurement processes; independent technical and financial audits and periodic evaluation of project milestones and outcomes.
Sokoto-Badagry Superhighway Project Factsheet
Total Length: Approximately 1,068 kilometres.
Route: Starts at Illela (Sokoto State, Niger Republic border) and terminates in Badagry (Lagos State).
States Covered: Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos.
Design: A dual carriageway (six lanes in key sections) featuring Rigid Concrete Pavement technology (20cm thickness) designed for a 100-year lifespan.
Primary Loan: $516.3 million (Approved by the National Assembly in April 2026).
Lender: Syndicated loan from Deutsche Bank AG, with a partial guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
Counterpart Funding: Also, The Federal Government has committed approximately ₦265.5 billion for land acquisition and compensation.
Loan Terms: 9-year tenure with a 3-year moratorium; interest rate at CME SOFR + 5.35%.
Section 1 (Phase 1A & 1B): Covers the first 120 km stretch, currently the focus of the new $516m loan.
Section 3: Spans 162.35 km from Agbara (Ogun State) to the Ogun/Oyo border. Also, construction began in November 2025, with Hitech as the lead contractor.
Recent Progress: As of early 2026, roughly 18 km of earthworks and 47 km of site clearance have been completed in Section 3 alone.
