President Bola Tinubu has formally requested the approval of the Senate for a $516.3 million foreign syndicated loan to fund the construction of the Sokoto–Badagry superhighway.
The request was conveyed in a letter read during plenary by Senate President Godswill Akpabio, seeking legislative backing in line with provisions of the Debt Management Office Act, 2011.
According to the President, the loan—arranged through Deutsche Bank AG—will finance Sections 1, Phase 1A and 1B of the project, a key component of his administration’s infrastructure drive under the Renewed Hope Agenda.
Tinubu explained that the proposed 1,000-kilometre highway will link several states, including Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos, connecting Illela to Badagry and improving the movement of goods and people across major economic corridors.
He added that the financing plan includes a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, while the Federal Government will provide over ₦265 billion in counterpart funding for land acquisition and related infrastructure.
The loan is structured over nine years with a three-year grace period, at an interest rate tied to the Chicago Mercantile Exchange SOFR plus 5.3 per cent annually. The Federal Executive Council has already approved the proposal.
Following its presentation, the Senate referred the request to its Committee on Local and Foreign Debts for review, with a directive to report back within one week.
Akpabio expressed support for the plan, noting that borrowing for critical infrastructure projects could enhance road safety and promote national integration.
