Reps Approve Tinubu's $516.3M Loan for Highway Project

The House of Representatives of Nigeria approved President Bola Ahmed Tinubu's loan request amounting to $516.3 million during a plenary session. The approval followed the adoption of a report by the House Committee on Aid, Loan, and Debt Management, which was presented by Chairman Abubakar Hassan Nalaraba.

The loan will finance a 120-kilometer stretch of highway, part of a larger 1,000-kilometer corridor linking Nigeria's northwest and southwest regions, including states such as Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos. The financing structure includes a nine-year tenor with a three-year moratorium and an interest rate benchmarked at CME SOFR plus 5.35 percent per annum.

The House mandated strict legislative oversight, requiring quarterly reports from the Federal Ministry of Finance and the Debt Management Office. Additionally, the financing agreement must be submitted to the National Assembly within 30 days of financial closure, ensuring transparency and value for money through competitive procurement processes and independent technical financial audits.