By Seun Ibiyemi
President Bola Tinubu has formally requested the Senate’s approval for a $516.3 million syndicated loan to finance key sections of the Sokoto–Badagry Superhighway, a flagship infrastructure project under his administration’s Renewed Hope Agenda.
The request was conveyed in a letter read during plenary on Thursday by Senate President Godswill Akpabio, seeking legislative authorisation in line with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011.
According to the President, the proposed financing will support the construction of Sections 1, 1A, and 1B of the ambitious highway project.
He also requested that the facility, expected to be sourced from Deutsche Bank, be incorporated into the Federal Government’s approved borrowing plan.
“The Sokoto–Badagry Superhighway is a flagship infrastructure initiative designed to open up Nigeria’s northwest–southwest economic corridor,” Tinubu stated, noting that the approximately 1,000-kilometre road will connect Sokoto to Lagos, passing through Kebbi, Niger, Kwara, Oyo, and Ogun states.
He added that the project is expected to enhance connectivity, reduce travel time and logistics costs, improve road safety, facilitate trade, strengthen food security, and promote national integration. Provisions for future rail integration and utility corridors, he said, would ensure long-term infrastructure efficiency.
The financing arrangement includes a syndicated loan backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit.
Tinubu disclosed that the Federal Government would provide counterpart funding of ₦265.5 billion to cover land acquisition, compensation, and related infrastructure.
He further noted that the loan would have a tenure of nine years, including a grace period of up to three years, with an interest rate pegged at CME SOFR plus 5.3 percent per annum. The Federal Executive Council has already approved the terms of the financing.
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 described the project as a long-awaited development, noting that it had remained on the drawing board for over five decades.
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“This project has been on the drawing board for more than 50 years and today it is taking shape,” Aliero said, adding that sections of the highway he inspected were being constructed using reinforced concrete and fitted with solar-powered street lighting.
He emphasized that the superhighway would significantly reduce travel time between Sokoto and Lagos from about 13 hours to roughly six hours.
In his remarks, Akpabio described the initiative as an economic game changer capable of boosting productivity and saving lives.
He also defended the government’s borrowing plan, stating that loans for critical infrastructure are justified when they deliver long-term value and support economic growth.
