President Bola Tinubu has requested the approval of the Senate for a fresh external borrowing of $516,333,070 to finance sections of the proposed Sokoto–Badagry Super Highway, a major infrastructure project under his administration.
The request, contained in a letter read during Thursday’s plenary by Senate President Godswill Akpabio, is expected to be sourced from Deutsche Bank and will fund Sections 1, 1A, and 1B of the 1,000-kilometre highway.
According to the President, the loan forms part of the Federal Government’s approved borrowing plan and will support a flagship project under the Renewed Hope Agenda.
“The inclusion of the said financing in the Federal Government’s borrowing plan, as earlier approved by the National Assembly. The Sokoto–Badagry Superhighway is a flagship infrastructure initiative under the Renewed Hope Agenda,” the letter stated.
The proposed highway is designed to link Nigeria’s North-West to the South-West corridor, passing through Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, stretching from Illela to Badagry.
Tinubu said the project is aimed at improving connectivity, boosting trade, and enhancing national integration by linking production zones to markets and seaports.
“It is also expected to enhance north–south connectivity and road safety, reduce logistics costs and travel time, facilitate trade and strengthen food security,” he said.
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, while the Federal Government will provide counterpart funding of ₦265.5 billion for land acquisition, compensation, and related works.
The loan is expected to span nine years, including a grace period of up to three years, with interest pegged to the SOFR benchmark plus 5.3 per cent annually.
The Federal Executive Council has already approved the arrangement, according to the President, who urged the Senate to give expedited consideration to the request.
Lawmakers at plenary described the project as economically significant, noting that the highway would drastically reduce travel time between Sokoto and Lagos from about 13 hours to roughly six hours once completed.
Senate President Godswill Akpabio also backed the proposal, describing it as a transformative infrastructure project with the potential to stimulate economic growth, save lives, and improve productivity.
He stressed that borrowing for critical infrastructure is justified when it delivers long-term value and economic returns.
The Senate subsequently referred the request to the Committee on Local and Foreign Debts, directing it to report back within one week for further legislative action.
Akpabio urged the committee to expedite its review to enable timely consideration of the loan request.
