President Bola Tinubu has requested that the Senate authorize a new external loan of $516,333,070 to pay sections of the projected Sokoto-Badagry Super Highway, a major project in his administration’s infrastructure program.
The proposal, contained in a letter submitted to the Senate President, Godswill Akpabio, was read during plenary on Thursday, paving the way for legislative consideration of the finance scheme.
According to the president, the loan, which is scheduled to come from Deutsche Bank, would help fund the construction of Sections 1, 1A, and 1B of the 1,000-kilometer highway that will connect Nigeria’s North and Southwest corridors.
The letter partly read, “Specifically, approval is sought for the syndicated financing facility from Deutsche Bank in the total sum of US$516,333,007 for the execution of Sections 1, 1A, and 1B of the Sokoto–Badagry Superhighway project.
“The inclusion of the said financing in the federal government’s borrowing plan, as earlier approved by the National Assembly. The Senate is invited to note that the Sokoto–Badagry Superhighway is a flagship infrastructure initiative under the Renewed Hope Agenda.”
Giving more details, the president explained that the project would traverse Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, stretching from Illela to Badagry, and is expected to enhance connectivity and economic integration significantly.
“The project is designed to open up Nigeria’s northwest–southwest economic corridor through the construction of an approximately 1,000-kilometer high-capacity carriageway, linking Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos States, stretching from Illela to Badagry.
“It is also expected to enhance north–south connectivity and road safety, improve network performance along the corridor, reduce logistics costs and travel time, facilitate trade and strengthen food security, and promote national integration by linking production zones to markets and ports,” he stated.
Tinubu revealed that the financing structure includes a syndicated loan with a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit. The federal government will provide ₦265.5bn for land acquisition, compensation, and related infrastructure.
Tinubu urged the Senate to expedite the request for a nine-year loan with a grace period of up to three years.
The interest rate will be benchmarked at the Chicago Mercantile Exchange SOFR plus 5.3% per year. The Federal Executive Council has already approved the financing arrangement.
“I look forward to the expeditious consideration and approval of this request by the Senate. Please accept, Distinguished Senate President and Distinguished Senators, the assurances of my highest regards,” the statement added.
On the Senate floor, legislators emphasized the project’s economic significance.
The senators also emphasized that substantial portions of the route would cross multiple states, reducing travel time between Sokoto and Lagos from 13 to six hours.
In his remarks, Akpabio supported the viewpoint, describing the project as a significant economic game changer capable of saving lives and increasing national production.
He emphasized that borrowing for important infrastructure is justified, especially when such investments provide long-term economic advantages and can be repaid through increased value.
The Senate President then forwarded the request to the Senate Committee on Local and Foreign Debts, instructing it to report back within one week.
Akpabio also urged the panel to expedite the review so that the loan request could be considered on time.
