The Senate on Wednesday approved a $516,333,700 syndicated financing facility for the construction of the Sokoto–Badagry Super Highway.
The approval followed the consideration and adoption of a report by the Senate Committee on Local and Foreign Debts during plenary.
The request, conveyed in a letter by President Bola Tinubu dated April 20, sought legislative backing for external borrowing in line with the Debt Management Office Establishment Act 2011 and the Fiscal Responsibility Act 2007.
The News Agency of Nigeria (NAN) reports that the request was referred to the committee on April 23, which subsequently recommended its approval.
Presenting the report on behalf of the committee chairman, Sen. Aliyu Wamakko (APC-Sokoto), Sen. Adamu Aliero (APC-Kebbi) said the facility would finance Section One, Phase One (A and B1) of the project, covering about 120 kilometres.
He noted that the highway forms part of a larger corridor expected to span approximately 1,000 kilometres from Sokoto to Badagry.
Aliero described the project as a strategic infrastructure initiative designed to enhance national connectivity by linking Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos states.
He added that it would improve trade, reduce travel time and logistics costs, and strengthen supply chains across key sectors, including agriculture and manufacturing.
According to him, the financing is structured as a syndicated facility provided by Deutsche Bank, with partial credit enhancement from the Islamic Corporation for the Insurance of Investment and Export Credit.
The loan has a tenor of nine years, including a grace period of up to three years, and an interest rate benchmarked at CME SOFR plus 5.35 per cent per annum.
He acknowledged that while the loan would increase Nigeria’s external debt stock, it is tied to long-term infrastructure expected to generate significant economic returns.
During debate, several senators supported the project, describing it as critical to economic growth and national integration.
Sen. Mohammed Monguno (APC-Borno) said it would unlock agricultural and transport value chains, while Deputy Senate President Jibrin Barau highlighted its role in strengthening connectivity between northern and southern regions.
Sen. Adetokunbo Abiru (APC-Lagos) noted that previous loan approvals faced disbursement challenges due to global financial constraints, adding that the current arrangement offers an alternative funding model.
Following deliberations, Senate President Godswill Akpabio put the recommendation to a voice vote, and it was overwhelmingly adopted.
The Senate subsequently approved the loan for the project and mandated strict oversight by relevant committees. It also directed quarterly reporting by the Federal Ministry of Finance, Debt Management Office and Federal Ministry of Works, as well as submission of the financing agreement within 30 days.
Lawmakers further emphasised the need for transparency, competitive procurement and regular project evaluation to ensure value for money and timely delivery.
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