President Bola Ahmed Tinubu has requested the approval of the Senate for a $516.3 million loan to finance part of the proposed Sokoto–Badagry Superhighway project.
The request was contained in a letter addressed to Senate President Godswill Akpabio and read during Thursday’s plenary session.
According to the President, the Sokoto–Badagry Superhighway is a 1,000-kilometre flagship infrastructure project aimed at linking Nigeria’s North-West to the South-West region. The highway is expected to run from Illela in Sokoto State, passing through Kebbi, Niger, Kwara, Oyo, and Ogun states, before terminating in Badagry, Lagos State.
Tinubu explained that the loan would specifically fund Sections 1, Phase 1a and 1b of the project, covering approximately 120 kilometres of the corridor.
He further disclosed that the financing arrangement involves a syndicated loan from Deutsche Bank AG, supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit. The Federal Government is also expected to contribute over ₦265.5 billion as counterpart funding for land acquisition, compensation, and related infrastructure.
The proposed loan has a tenure of nine years, including a grace period of up to three years, and carries an interest rate tied to the Chicago Mercantile Exchange SOFR plus 5.3 percent annually.
President Tinubu noted that the Federal Executive Council has already approved the funding arrangement and requested its inclusion in the national borrowing plan. He emphasized that the project would enhance connectivity, improve road safety, reduce logistics costs, and boost trade and food security by linking key production zones to markets and ports. He also highlighted provisions for future rail and utility corridors along the route.
Following the presentation, Senate President Akpabio referred the request to the Senate Committee on Foreign and Local Debts, directing it to report back within one week.
Speaking on the development, Senator Mohammed Adamu Aliero described the project as long overdue, noting that it had been in consideration for over five decades. He expressed satisfaction with the progress made so far, adding that the construction includes both concrete and asphalt roads, as well as solar-powered streetlights.
Aliero further stated that upon completion, the highway could significantly reduce travel time between Sokoto and Lagos from about 13 hours to approximately six hours.
The Senate is expected to deliberate on the committee’s report in the coming days.
