Tinubu seeks Senate approval for fresh $516.3m loan for Sokoto–Badagry road

President Bola Tinubu has asked the Senate to approve a fresh external borrowing of $516.3 million for the Sokoto–Badagry Superhighway project, describing it as a critical infrastructure investment under his administration’s Renewed Hope Agenda.

In a formal communication to the National Assembly, the President said the request was made “pursuant to the provisions of Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011,” seeking legislative backing for a syndicated loan facility to fund key segments of the project.

“The purpose of this communication is to formally request the resolution of the National Assembly… to approve a proposed foreign financing arrangement of a syndicated loan facility of US$516,333,007 for the construction of the Sokoto–Badagry Superhighway Project,” the letter read.

Tinubu explained that the facility, to be sourced through a consortium led by Deutsche Bank, would finance Sections 1, 1A and 1B of the highway, covering about 120 kilometres.

“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,” he stated.

He further requested that the facility be incorporated into the Federal Government’s borrowing plan already 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,” the President said.

He described the project as a strategic corridor designed to connect Nigeria’s northwest to the southwest through a 1,000-kilometre high-capacity dual carriageway stretching from Illela to Badagry, traversing Kebbi, Niger, Kwara, Oyo, Ogun and Lagos States.

According to him, the road is 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.”

Tinubu added that the project would also “provide long-term intermodal flexibility through provision for future rail integration and utility corridors.”

On financing structure, the President disclosed that the loan would be backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, an arm of the Islamic Development Bank.

“The proposed financing arrangement comprises a syndicated loan… supported by a partial risk guarantee from ICIEC,” he said, adding that the Federal Government would provide counterpart funding of ₦265.5 billion for land acquisition, compensation and ancillary infrastructure.

Providing details of the terms, Tinubu noted that “the loan has a tenure of nine years, including a grace period of up to three years, with an interest rate not exceeding the Chicago Mercantile Exchange (CME) SOFR plus 5.3 percent per annum.”

He informed lawmakers that the Federal Executive Council had already approved the arrangement and urged swift legislative action.

“I look forward to the expeditious consideration and approval of this request by the Senate,” the letter added.

Following the presentation at plenary, Senate President Godswill Akpabio referred the request to the Senate Committee on Local and Foreign Debts, directing it to report back within one week.

During deliberations, Adamu Aliero described the highway as a long-awaited project that had remained unrealised for decades.

He said, “This is a landmark project that has been on the drawing board for over five decades,” noting that work was already progressing on several sections.

According to him, the superhighway,constructed with reinforced concrete and fitted with solar-powered street lighting meets modern infrastructure standards.

Aliero added that the project would significantly cut travel time between Sokoto and Lagos.

“The project will drastically reduce travel time from about 13 hours to roughly six hours,” he said, describing it as transformative for the northwest, north-central and southwest regions.

He urged lawmakers to support the proposal when the committee submits its report.

Also speaking, Akpabio aligned with the position, describing the project as a major economic catalyst.

“This is a major economic game changer capable of saving lives and boosting national productivity,” he said.

He further justified the borrowing plan, noting that “borrowing for critical infrastructure is justified, particularly where such investments yield long-term economic benefits and can facilitate repayment through generated value.”

The Senate leadership subsequently urged the committee to expedite its review to enable timely consideration of the request in one week.