The Senate has approved a $516 million syndicated loan request by President Bola Tinubu to fund the construction of Section 1, Phases 1A and 1B of the Sokoto–Badagry Super Highway.
- +Senate Approves Tinubu’s $516m Loan Request
The approval followed the consideration of a report during plenary, presented by the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko.
The approval followed the consideration of a report during plenary, presented by the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko.
The committee recommended that the financing arranged through Deutsche Bank AG be incorporated into the Federal Government’s borrowing plan.
According to the report, the loan comes with a partial guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and carries a tenor of nine years, including a grace period of up to three years.
During deliberations, lawmakers highlighted the strategic importance of the highway project.
Senator Tahir Monguno noted that the road was expected to connect three of Nigeria’s geopolitical zones and significantly reduce travel time between the northern and southern parts of the country.
The Senate President, Godswill Akpabio, explained that an earlier $5 million request by the President, approved by the Senate, was to be assessed.
He noted that the borrowing arrangement through Abu Dhabi had stalled owing to escalating conflict in the region, preventing the Federal Government from drawing on the funds.
He added that securing alternative financing sources would accelerate ongoing development efforts.
Beyond transportation, lawmakers argued that the Sokoto–Badagry Super Highway project is expected to boost agricultural productivity by improving access to markets, supporting dam development, and strengthening the agricultural value chain.
The Senate’s approval is expected to be transmitted to the President today for final action.
President Tinubu had on April 23 formally written to the Senate, seeking approval for the foreign syndicated loan to support the construction of the highway.
He requested a resolution in line with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011, to enable the Federal Government to secure the financing for Sections 1, Phase 1A, and 1B of the project.
Tinubu explained that the superhighway project was a flagship initiative under his administration’s Renewed Hope Agenda, designed to enhance national connectivity, reduce travel time, and improve the movement of goods across key economic corridors.
The proposed 1,000-kilometre road is expected to link Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, connecting Illela to Badagry.
He noted that the financing arrangement would be backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), while the Federal Government would provide counterpart funding of over ₦265 billion for land acquisition, compensation, and related infrastructure.
According to the president, the loan is structured for nine years, including a three-year grace period, with an interest rate pegged at the Chicago Mercantile Exchange SOFR plus 5.3 per cent per annum.
The House of Representatives approved the loan on Tuesday.
