Tinubu seeks Senate approval for $516m loan to fund Sokoto–Badagry Superhighway

President Bola Tinubu has asked the Senate to approve a $516.3 million syndicated loan to finance key sections of the Sokoto–Badagry Superhighway, a flagship infrastructure project under his administration’s Renewed Hope Agenda.

The request, contained in a letter read during plenary on Thursday by Senate President Godswill Akpabio, seeks legislative authorisation in line with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011.

In the letter, the President outlined the scope and purpose of the proposed financing.

“The purpose of this communication is to formally request the resolution of the National Assembly, to approve a proposed foreign financing arrangement of a syndicated loan facility of US$516,333,007 for the construction of the Sokoto–Badagry Superhighway Project.”

Tinubu also urged lawmakers to approve both the loan facility and its inclusion in the federal government’s borrowing plan already endorsed by the National Assembly.

“Approval is sought for the syndicated financing facility from Deutsche Bank for the execution of Sections 1, 1A, and 1B… and the inclusion of the said financing in the federal government’s borrowing plan,” the letter stated.

He described the Sokoto–Badagry Superhighway as a key national project designed to unlock economic potential across major regions.

“The Sokoto–Badagry Superhighway is a flagship infrastructure initiative designed to open up Nigeria’s northwest–southwest economic corridor through the construction of an approximately 1,000-kilometre high-capacity carriageway.”

The route will link Sokoto to Lagos, passing through Kebbi, Niger State, Kwara, Oyo and Ogun, extending from Illela to Badagry.

According to the President, the project is expected to deliver wide-ranging economic and social benefits.

“The project will enhance north–south connectivity and road safety, reduce logistics costs and travel time, facilitate trade and strengthen food security, and promote national integration.”

He added that provisions for future rail integration and utility corridors would ensure long-term infrastructure efficiency.

Tinubu explained that the financing structure includes a syndicated loan backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, the insurance arm of the Islamic Development Bank.

He also disclosed that the federal government will provide counterpart funding of ₦265.5 billion for land acquisition, compensation and related infrastructure.

The loan, according to him, will span nine years with a grace period of up to three years, and an interest rate capped at CME SOFR plus 5.3 percent per annum.

He added that the Federal Executive Council has already approved the financing terms.

Following the presentation, Akpabio referred the request to the Senate Committee on Local and Foreign Debts, directing it to report back within one week.

During deliberations, Sen. Adamu Aliero (APC-Kebbi) described the project as a long-awaited development.

He noted that the highway, which had remained on the drawing board for over 50 years, is now becoming a reality.

“This project has been on the drawing board for more than five decades and today, it is taking shape,” he said.

Aliero added that he had inspected sections of the road and described the construction quality as modern and durable.

“The superhighway is being constructed using reinforced concrete and equipped with solar-powered street lighting. It meets modern infrastructure standards,” he said.

He further noted that travel time between Sokoto and Lagos would be significantly reduced.

“Travel time will drop from about 13 hours to roughly six hours, which is a major improvement.”

He urged lawmakers to support the project when the committee submits its report.

Senate President Godswill Akpabio also backed the proposal, describing it as economically transformative.

“This is a major economic game changer capable of saving lives and boosting productivity,” he said.

He defended the government’s borrowing approach, adding: “Borrowing for critical infrastructure is justified, particularly where such investments yield long-term benefits and can facilitate repayment through generated value.”