President Bola Tinubu has approached the Senate for approval to secure a fresh external loan of $516.3 million to finance parts of the proposed Sokoto–Badagry Super Highway, a key project under his administration’s infrastructure agenda.
The request was conveyed in a letter addressed to Senate President Godswill Akpabio and read during plenary on Thursday, paving the way for lawmakers to consider the funding plan.
According to the President, the loan expected to be sourced from Deutsche Bank will be used for the construction of Sections 1, 1A and 1B of the ambitious 1,000-kilometre highway. The project is designed to connect Nigeria’s North-West to the South-West, stretching from Illela in Sokoto State to Badagry in Lagos State.
Tinubu explained that the superhighway will pass through Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos states, and is expected to significantly boost connectivity and economic activities across the corridor.
He noted that the road project is aimed at improving transportation efficiency, reducing travel time and logistics costs, enhancing road safety, and strengthening trade and food supply chains by linking production centres to markets and ports.
The President added that the financing package includes a syndicated loan arrangement backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit. He also disclosed that the Federal Government will contribute ₦265.5 billion as counterpart funding for land acquisition, compensation and related infrastructure.
Providing further details, Tinubu said the loan will have a tenure of nine years, including a grace period of up to three years, with interest pegged at the Chicago Mercantile Exchange SOFR plus 5.3 per cent annually. He noted that the Federal Executive Council has already approved the borrowing plan.
Urging lawmakers to act swiftly, the President expressed hope for quick approval of the request.
During deliberations, senators highlighted the economic importance of the project, noting that it could cut travel time between Sokoto and Lagos from about 13 hours to six hours.
Akpabio, in his remarks, described the highway as a transformative project capable of boosting productivity, saving lives and driving long-term economic growth. He added that borrowing for critical infrastructure is justifiable when it delivers lasting value.
The Senate President subsequently referred the request to the Senate Committee on Local and Foreign Debts, directing it to review and report back within one week for further legislative action.
Advertisement
