Tinubu seeks Senate approval for $516.3m loan

President Bola Ahmed Tinubu has requested Senate approval for a $516,333,007 loan to finance sections of the Sokoto–Badagry Superhighway project.

The request was contained in a letter read on Thursday during plenary by Senate President Godswill Akpabio. The funding is intended for Sections 1, Phase 1a and 1b of the 1,000km highway corridor, which is planned to connect Nigeria’s northwestern region to the southwest.

The route runs from Illela in Sokoto State through Kebbi, Niger, Kwara, Oyo and Ogun, ending in Badagry, Lagos State. The current financing covers about 120km of the overall project.

The loan is structured as a syndicated facility arranged through Deutsche Bank AG, with a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), part of the Islamic Development Bank group.

In addition, the Federal Government will provide ₦265.54 billion in counterpart funding for land acquisition, compensation and related infrastructure.

The financing arrangement carries a nine-year tenor, including a grace period of up to three years, and an interest rate capped at SOFR plus 5.3%.

The President noted that the Federal Executive Council had already approved the arrangement, while the Senate was asked to include it in the national borrowing plan.

The proposal was referred to the Senate Committee on Foreign and Local Debts, which is expected to submit its report within one week.

Speaking during the session, Senator Mohammed Adamu Aliero described the project as long anticipated, noting that planning had stretched over several decades. He said he had inspected parts of the work and observed ongoing construction activities, including concrete and asphalt sections as well as solar-powered street lighting.

He added that the completed highway could reduce travel time between Sokoto and Lagos from about 13 hours to roughly six hours, and urged the Senate to consider swift approval once the committee concludes its review.