President Bola Ahmed Tinubu has asked the Senate of Nigeria to approve a $516.3 million foreign syndicated loan to support the construction of the Sokoto–Badagry superhighway.
The request was conveyed in a letter read during plenary by Senate President Godswill Akpabio on Thursday. The President is seeking legislative approval in line with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011, to enable the Federal Government to secure funding for Sections 1, Phase 1A and 1B of the project. The loan is expected to be arranged through Deutsche Bank AG.
According to Tinubu, the proposed highway is a key project under his administration’s Renewed Hope Agenda, aimed at improving connectivity, reducing travel time, and enhancing the movement of goods across major economic corridors.
The 1,000-kilometre road is designed to connect Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, linking Illela in the north to Badagry in the southwest.
The President also disclosed that the financing plan will be supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, while the Federal Government will contribute over ₦265 billion as counterpart funding for land acquisition, compensation, and related infrastructure.
He added that the loan will run for nine years, including a three-year grace period, with an interest rate tied to the Chicago Mercantile Exchange SOFR plus 5.3 per cent annually. The Federal Executive Council has already approved the funding arrangement.
Following the presentation, the Senate President referred the request to the Senate Committee on Local and Foreign Debts, directing it to report back within one week.
Akpabio also backed the proposal, noting that borrowing for critical infrastructure projects like roads can enhance safety and strengthen national integration.
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