President Bola Tinubu has asked the Senate to approve a $516.3 million external loan to fund key sections of the proposed Sokoto–Badagry Superhighway, a flagship infrastructure project under his administration.
The request, contained in a letter addressed to Senate President Godswill Akpabio, was read during Thursday’s plenary, initiating legislative consideration of the borrowing plan.
Tinubu said the facility, expected from Deutsche Bank, would finance Sections 1, 1A and 1B of the 1,000-kilometre highway designed to link Nigeria’s North-West to the South-West.
According to the President, the project will pass through Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos states, stretching from Illela to Badagry, and is aimed at boosting connectivity, trade and national integration.
He explained that the financing structure includes a syndicated loan backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, while the Federal Government will provide ₦265.5 billion as counterpart funding for land acquisition, compensation and related infrastructure.
Tinubu added that the loan has a nine-year tenor, including a three-year grace period, with interest benchmarked at SOFR plus 5.3 per cent per annum. He noted that the project is already captured in the Federal Government’s borrowing plan approved by the National Assembly.
Highlighting its economic impact, the President said the superhighway would significantly reduce travel time between Sokoto and Lagos from about 13 hours to six hours, lower logistics costs, improve road safety, and enhance food security by linking production hubs to markets and ports.
In his remarks, Akpabio described the project as a “major economic game changer,” stressing that borrowing for critical infrastructure is justified where it delivers long-term value and supports economic growth.
The Senate has referred the request to its Committee on Local and Foreign Debts for review, with a directive to report back within one week.
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