Tinubu Seeks Senate Approval For $516.3m Sokoto–Badagry Superhighway Loan

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

The request, contained in a letter read during plenary by Senate President Godswill Akpabio, seeks legislative authorization 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.”

He specifically asked 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.

Tinubu described the Sokoto–Badagry Superhighway as a flagship initiative aimed at unlocking Nigeria’s economic corridors.

“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.”

He added that the highway will connect Sokoto State to Lagos State, passing through Kebbi State, Niger State, Kwara State, Oyo State, and Ogun State, stretching 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.

The President said the proposed financing arrangement includes a syndicated loan backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the insurance arm of the Islamic Development Bank.

He noted that the Federal Government is expected to provide counterpart funding of ₦265.5 billion for land acquisition, compensation, and ancillary infrastructure.

He said the loan will run for nine years, including a grace period of up to three years, with 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.

Tinubu further stated: “Approval is hereby requested for the syndicated loan facility, the inclusion of the facility in the borrowing plan, and the execution of Sections 1, 1A, and 1B of the project, covering approximately 120 kilometres.”

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, Senator Adamu Aliero (Sokoto Central) described the superhighway as a long-awaited development.

He noted that the project, 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 revealed that he had inspected parts of the road, describing 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 added that the project would significantly reduce travel time between Sokoto and Lagos:

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

The senator urged his colleagues to support the initiative by approving the committee’s report once presented.

In his remarks, Akpabio endorsed the project, describing it as economically transformative.

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

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

The Senate Committee on Local and Foreign Debts is expected to submit its report within one week, after which the full Senate will consider the request for approval.