The House of Representatives has approved President Bola Ahmed Tinubu’s request to secure a $516.33 million external loan to fund sections of the proposed Sokoto–Badagry Super Highway, marking a key legislative step in advancing the flagship infrastructure project.
The approval was granted during Tuesday’s plenary following the presentation and adoption of a report by the House Committee on Aids, Loans and Debt Management, led by its deputy chairman, Abdullahi Rasheed.
The facility, expected to be sourced from Deutsche Bank, forms part of the Federal Government’s broader borrowing plan aimed at financing critical infrastructure across the country.
The Sokoto–Badagry Super Highway is a major component of the administration’s transport and economic integration agenda, designed to link Nigeria’s far North-West to the South-West corridor, enhancing trade, mobility, and regional connectivity.
The lower chamber’s approval follows a similar request transmitted earlier to the Senate, where it is currently undergoing legislative consideration. President Tinubu had urged lawmakers to expedite approval, stressing the importance of the project to national development.
The move comes amid mounting concerns over Nigeria’s rising debt profile and the increasing cost of servicing obligations. Recent data from the Debt Management Office indicate that the country’s total public debt stood at approximately N159.28 trillion as of December 2025, with projections suggesting it could exceed N170 trillion in 2026.
In addition to external borrowing, the Federal Government has continued to tap the domestic debt market. Plans are underway to raise about N700 billion through an April 2026 bond auction, involving the re-opening of existing instruments across 2030, 2032, and 2035 maturities.
Analysts note that while the April issuance represents a slight reduction from earlier months, it reflects ongoing fiscal pressures rather than a significant easing of borrowing needs. Yields on long-term government bonds have remained elevated, approaching 23 per cent, underscoring tight monetary conditions driven by persistent inflation.
Nigeria’s debt servicing costs have also surged in recent years, rising to about N16 trillion in 2025 from N13.02 trillion in 2024, placing additional strain on public finances.
Despite these concerns, government officials maintain that strategic borrowing remains necessary to bridge infrastructure gaps and support economic growth. The Sokoto–Badagry highway project is expected to play a critical role in boosting inter-state commerce and improving logistics across key economic zones.