Tinubu Seeks Senate Approval for $516m Loan for Sokoto–Badagry Superhighway

President Bola Ahmed Tinubu has formally requested the approval of the Senate for a $516.3 million external loan to finance key sections of the proposed Sokoto–Badagry Superhighway.

The request was conveyed in a letter addressed to Senate President Godswill Akpabio and read during plenary, setting the stage for legislative consideration of the financing plan.

According to the President, the loan expected to be sourced from Deutsche Bank will fund Sections 1, 1A, and 1B of the project, which forms part of the Federal Government’s broader borrowing plan already approved by the National Assembly.

The Sokoto–Badagry Superhighway, a flagship initiative under the administration’s Renewed Hope Agenda, is designed as a 1,000-kilometre corridor linking Illela in Sokoto State to Badagry in Lagos State, passing through Kebbi, Niger, Kwara, Oyo, and Ogun states.

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President Tinubu noted that the project is expected to significantly enhance national connectivity, reduce travel time, lower logistics costs, and improve the movement of goods across key economic corridors.

He added that the highway would also boost trade, strengthen food security, and promote national integration by connecting production centres with major markets and ports.

The proposed loan is structured over a nine-year period, including a three-year grace period, with an interest rate benchmarked to the Chicago Mercantile Exchange SOFR plus 5.3 percent.

Following its presentation, the Senate referred the request to the Committee on Local and Foreign Debts for further legislative scrutiny, with a directive to report back within one week.

The move comes amid ongoing debates over Nigeria’s rising debt profile, even as the government continues to prioritize infrastructure development as a key driver of economic growth.