Reps approve $516m loan for Sokoto–Badagry superhighway project

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By Boluwatife Oshadiya

Key Points

• House approves $516.33m loan for highway project
• Project to connect Sokoto to Lagos through major economic corridors
• Government to provide N265.54bn counterpart funding

Main Story

The House of Representatives has approved President Bola Tinubu’s request to secure a $516.33 million loan from Deutsche Bank to finance the first phase of the Sokoto–Badagry Superhighway project.

The approval followed deliberations during plenary, presided over by Speaker Tajudeen Abbas, after the President’s request was presented before lawmakers.

The proposed highway, spanning approximately 1,000 kilometres, is designed to link Nigeria’s northwestern region to its southwestern coastline, running from Illela in Sokoto State to Badagry in Lagos.

Project Scope and Economic Impact

The corridor will traverse several states, including Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos, connecting key agricultural and commercial zones.

According to the Federal Government, the project is expected to:

• Improve transportation efficiency across regions
• Reduce logistics costs and travel time
• Strengthen trade and food supply chains
• Enhance national economic integration

The highway is also structured to accommodate future rail infrastructure and utility corridors, aligning with long-term transport planning objectives.

Funding Structure

The financing arrangement includes:

• $516.33 million facility from Deutsche Bank
• Partial risk guarantee from the Islamic Development Bank

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• N265.54 billion counterpart funding from the Federal Government

The government’s contribution will cover land acquisition, compensation, and supporting infrastructure.

What’s Being Said

Lawmakers backing the proposal described the project as a critical economic driver.

“This project will significantly enhance productivity and open up new economic opportunities across multiple regions,” a committee representative stated during deliberations.

What’s Next

With legislative approval secured, the Federal Government is expected to proceed with implementation of the first phase of the project, marking a major step in Nigeria’s infrastructure expansion strategy under the Renewed Hope Agenda.

The highway is projected to play a pivotal role in boosting regional trade and positioning Nigeria more competitively within the African Continental Free Trade Area (AfCFTA).