The House of Representatives has approved a request by President Bola Ahmed Tinubu to secure a $516.33 million external loan to finance key segments of the proposed Sokoto–Badagry Superhighway, a flagship infrastructure project of the Federal Government.
The decision was taken during Tuesday’s plenary after lawmakers adopted the report of the House Committee on Aids, Loans and Debt Management, presented by its deputy chairman, Abdullahi Rasheed.
The loan, expected to be sourced from Deutsche Bank, is part of a broader borrowing framework designed to fund critical infrastructure and support economic expansion.
The Sokoto–Badagry Superhighway is envisioned as a strategic corridor linking Nigeria’s North-West to the South-West, with the potential to significantly enhance trade flows, reduce travel time, and improve logistics across multiple states.
Lawmakers said the project aligns with the administration’s goal of deepening economic integration and unlocking commercial opportunities along the route.
The approval by the lower chamber follows the transmission of a similar request to the Senate, where it is currently under review. President Tinubu had earlier urged the National Assembly to expedite consideration, citing the project’s importance to national development.
However, the fresh borrowing move comes against the backdrop of rising concerns over Nigeria’s growing debt burden and escalating debt servicing costs.
Data from the Debt Management Office show that Nigeria’s total public debt stood at about N159.28 trillion as of December 2025, with projections indicating it could surpass N170 trillion in 2026 if current borrowing trends persist.
The Federal Government has also maintained an active presence in the domestic debt market, with plans to raise approximately N700 billion through an April 2026 bond auction. The issuance will involve the re-opening of bonds maturing in 2030, 2032, and 2035.
Financial analysts say the relatively high yields on these instruments—approaching 23 per cent—reflect tight monetary conditions driven by inflationary pressures and policy tightening, factors that continue to raise the cost of borrowing.
At the same time, Nigeria’s debt servicing obligations have climbed sharply, reaching about N16 trillion in 2025, up from N13.02 trillion recorded in 2024, further straining government finances.
Despite these challenges, officials insist that borrowing for infrastructure remains essential to addressing the country’s development needs. They argue that projects such as the Sokoto–Badagry Superhighway will stimulate economic activity, improve connectivity, and generate long-term returns.
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