President Bola Ahmed Tinubu has formally requested the Senate’s approval for a $516.3 million external loan to finance key sections of the proposed Sokoto–Badagry Super Highway.
The request was conveyed in a letter addressed to Senate President Godswill Akpabio, and read during Thursday’s plenary session.
In the letter, Tinubu explained that the funds would be sourced through a syndicated financing arrangement led by Deutsche Bank, and would cover Sections 1, 1A, and 1B of the ambitious 1,000-kilometre highway project.
“Approval is sought for a syndicated financing facility in the sum of $516,333,070 for the execution of Sections 1, 1A, and 1B of the Sokoto–Badagry Superhighway Project,” the President stated.
He noted that the loan forms part of the Federal Government’s broader borrowing plan already endorsed by the National Assembly, adding that the project is central to his administration’s infrastructure agenda.
Describing the highway as a strategic economic corridor, Tinubu said it would pass through Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, linking Illela in the North-West to Badagry in the South-West.
“The project is designed to open up the northwest–southwest economic corridor by constructing an approximately 1,000-kilometre high-capacity carriageway,” he said.
“It will enhance connectivity, improve road safety, reduce travel time and logistics costs, and strengthen trade and food security across regions.”
The President further disclosed that the financing package includes a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, while the Federal Government will provide ₦265.5 billion as counterpart funding for land acquisition, compensation, and supporting infrastructure.
Tinubu also outlined the loan terms, noting that it would run for nine years, including a grace period of up to three years, with interest tied to the Chicago Mercantile Exchange SOFR plus 5.3 per cent annually.
On the Senate floor, lawmakers acknowledged the potential economic benefits of the project, particularly its impact on transportation efficiency and regional integration.
Akpabio described the highway as “a major economic game changer,” stressing that strategic borrowing for infrastructure development is justified when it delivers long-term value.
“This project has the capacity to boost productivity, save lives, and significantly reduce travel time across key regions,” he said.
Following deliberations, the Senate President referred the request to the Committee on Local and Foreign Debts for further review, directing it to submit its report within one week.
He also urged the committee to expedite its work to ensure timely consideration of the proposal.
