Nigeria's Bauchi State has secured a US$91.6 million loan facility from the Economic Community of West African States (ECOWAS) Bank for Investment and Development (BOAD) to finance critical infrastructure projects.
The funding is designated for the construction and rehabilitation of 24 roads and bridges across the state, aiming to improve regional connectivity and logistics efficiency.
The facility is backed by a guarantee from the Nigerian federal government, ensuring sovereign support for the sub-national borrowing.
The deal underscores the ongoing role of regional development banks in financing infrastructure gaps in West Africa, where state-level governments increasingly turn to multilateral lenders to fund capital-intensive projects.
By securing a federal guarantee, Bauchi State mitigates credit risk for the lender while accessing lower-cost financing than might be available through commercial markets.
This structure is common in emerging markets where sub-national entities lack standalone investment-grade ratings.