President Bola Tinubu has approached the Senate for approval to secure a new external loan of $516,333,070 to finance parts of the proposed Sokoto–Badagry Super Highway, a key project in his administration’s infrastructure agenda.
The request was conveyed in a letter to Senate President Godswill Akpabio and read during Thursday’s plenary, initiating the legislative review of the funding proposal.
Tinubu stated that the loan, expected to be obtained from Deutsche Bank, would fund the construction of Sections 1, 1A, and 1B of the 1,000-kilometre highway aimed at connecting Nigeria’s North-West to the South-West.
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Part of the letter read: “Approval is sought for a syndicated financing facility from Deutsche Bank in the sum of $516,333,007 for the execution of Sections 1, 1A, and 1B of the Sokoto–Badagry Superhighway Project. This financing has already been captured in the Federal Government’s borrowing plan approved by the National Assembly. The Senate is invited to note that this project is a flagship initiative under the Renewed Hope Agenda.”
The President explained that the highway would pass through Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, stretching from Illela to Badagry, and is expected to significantly improve connectivity and economic integration.
He noted that the project is designed to open up the northwest–southwest economic corridor through a high-capacity road network, linking major production zones to markets and ports.
According to him, the highway will improve road safety, reduce travel time and logistics costs, enhance transport efficiency, support trade, strengthen food security, and promote national unity.
Tinubu further revealed that the financing plan 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 contribute ₦265.5 billion as counterpart funding for land acquisition, compensation, and related infrastructure.
He added that the loan tenure is nine years, including a grace period of up to three years, with an interest rate tied to the Chicago Mercantile Exchange SOFR plus 5.3 per cent annually.
The President noted that the Federal Executive Council had already endorsed the funding arrangement and urged the Senate to grant swift approval.
“I look forward to the prompt consideration and approval of this request by the Senate. Please accept the assurances of my highest regards,” the letter stated.
During plenary, senators underscored the economic importance of the project, noting that it would cut travel time between Sokoto and Lagos from about 13 hours to six hours.
Akpabio supported the proposal, describing the highway as a transformative economic project that could save lives and enhance productivity nationwide.
He maintained that borrowing for vital infrastructure is justifiable, particularly when such investments deliver long-term economic returns.
The Senate President subsequently referred the request to the Senate Committee on Local and Foreign Debts, instructing it to submit its report within one week, while urging a speedy review to facilitate timely consideration.
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