Tinubu requests Senate approval US$516.33m loan for Sokoto–Badagry superhighway project

By Haruna Salami

President Bola Tinubu has formally requested for Senate approval of the sum of US$516,333,007 for the construction of the Sokoto–Badagry Superhighway Project.
In a letter to the Senate read by the President of the Senate, Godswill Akpabio at plenary on Thursday, Tinubu said the request is “pursuant to the provisions of Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011, 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.
Specifically, he said the approval is sought for 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.
Secondly, Tinubu requested for the inclusion of the said financing in the Federal Government’s borrowing plan, as earlier approved by the National Assembly.
The letter urged the Senate to note that “the Sokoto–Badagry Superhighway is a flagship infrastructure initiative under the Renewed Hope Agenda.
“The project is designed to open up Nigeria’s northwest–southwest economic corridor through the construction of an approximately 1,000-kilometre high-capacity carriageway, linking Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos States, stretching from Illela to Badagry.
The project 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
“Promote national integration by linking production zones to markets and ports
“Provide long-term intermodal flexibility through provision for future rail integration and utility corridors
Tinubu said the proposed financing arrangement comprises a syndicated loan to be secured through Deutsche Bank AG, supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the insurance arm of the Islamic Development Bank.
He said the Federal Government will provide counterpart funding in the sum of N265,542,689,569, covering land acquisition, compensation, and ancillary infrastructure.
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 said the Federal Executive Council has already approved the financing arrangement and its terms.
In light of the foregoing, approval is hereby requested from the National Assembly for:
“The syndicated loan facility of US$516,333,007
“The inclusion of the facility in the borrowing plan
“The execution of Sections 1, 1A, and 1B of the project, covering approximately 120 kilometres”.
He said a draft resolution is attached for ease of reference, adding that he “looks forward to the expeditious consideration and approval of this request by the Senate”.
The President’s request was referred to the Senate Committee on Local and Foreign Debts, with a directive to report back within one week.
Contributing to the debate, Senator Adamu Aliero commended the President for initiating what he described as “a landmark project that had remained on the drawing board for over five decades.
He noted that the project is already taking shape, citing firsthand inspection of completed and ongoing sections.
According to him, the superhighway is constructed using reinforced concrete and equipped with solar-powered street lighting meets modern infrastructure standards.
The senator stated that significant portions of the road pass through multiple states, adding that the project would drastically reduce travel time between Sokoto and Lagos from approximately 13 hours to about six hours.
He described the initiative as “transformative”, with the potential to positively impact the northwest, north-central, and southwest regions of the country.