President Bola Tinubu has formally asked the Senate to approve a fresh external borrowing of $516.3 million to support the Sokoto–Badagry Super Highway project.
- +Tinubu seeks Senate nod for $516m Sokoto–Badagry road loan
In a letter transmitted to the upper chamber, the president said the proposed facility sourced through a syndicated arrangement led by Deutsche Bank would finance Sections I, Phase IA and IB of the project, covering roughly 120 kilometres.
In a letter transmitted to the upper chamber, the president said the proposed facility sourced through a syndicated arrangement led by Deutsche Bank would finance Sections I, Phase IA and IB of the project, covering roughly 120 kilometres.
He explained that the request complies with Sections 16 and 21 of the Debt Management Office Act governing public borrowing.
Tinubu described the highway as a cornerstone of his administration’s Renewed Hope Agenda, designed to establish a major North–South transport corridor.
The full project spans about 1,000 kilometres of dual carriageway, linking Kebbi, Niger, Kwara, Oyo, Ogun and Lagos States.
According to the president, the road is expected to significantly enhance connectivity across the country, improve safety, cut travel time and logistics costs, and boost trade and food supply chains by easing movement between production hubs, markets and seaports.
He added that the design also makes room for future infrastructure expansion, including utility corridors and integration with other transport systems.
The financing plan includes a partial risk guarantee from Islamic Corporation for the Insurance of Investment and Export Credit, an arm of the Islamic Development Bank, alongside federal government counterpart funding estimated at N265.5 billion. Additional provisions have been made for land acquisition, compensation and ancillary infrastructure.
Details of the loan show a nine-year repayment period, including a grace window of up to three years, with interest pegged at CME SOFR plus 5.3 per cent.
Tinubu noted that the Federal Executive Council had already endorsed the financing arrangement and urged lawmakers to incorporate it into the country’s borrowing plan.
Following its presentation, Senate President Godswill Akpabio referred the request to the Senate Committee on Local and Foreign Debts, directing the panel to report back within one week.
