President Bola Tinubu has formally requested the Senate’s approval for 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 on Thursday by Senate President Godswill Akpabio, in which Tinubu sought a resolution in line with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011. The approval would enable the Federal Government to secure funding for Sections 1, Phase 1A and 1B of the project, with the facility to be arranged by Deutsche Bank AG.
The president described the proposed highway as a flagship project under his administration’s Renewed Hope Agenda, aimed at boosting national connectivity, reducing travel time, and improving the movement of goods along key economic corridors.
The 1,000-kilometre road is expected to link Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos states, stretching from Illela to Badagry.
Tinubu further disclosed that the financing arrangement would be supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, while the Federal Government would provide counterpart funding exceeding ₦265 billion for land acquisition, compensation and related infrastructure.
According to the president, the loan is structured over nine years, including a three-year grace period, with an interest rate tied to the Chicago Mercantile Exchange SOFR plus 5.3 per cent per annum. He added that the Federal Executive Council has already approved the financing plan.
Following its presentation, Akpabio referred the request to the Senate Committee on Local and Foreign Debts, directing it to report back within one week.
Endorsing the proposal, the Senate President stated that borrowing for infrastructure projects aimed at improving road safety and promoting national integration is justified.
