President Bola Ahmed Tinubu has formally approached the Nigerian Senate for approval to secure a $516.3 million foreign syndicated loan to finance critical phases of the proposed Sokoto–Badagry superhighway, a flagship infrastructure project under his administration.
The request, conveyed in a letter read on the Senate floor by Senate President Godswill Akpabio on Thursday, seeks legislative backing in line with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011. The facility is expected to be arranged by Deutsche Bank AG and will fund Sections 1, Phase 1A and 1B of the highway project.
In the communication, Tinubu described the 1,000-kilometre road as a central pillar of his Renewed Hope Agenda, aimed at boosting economic integration and improving transport efficiency across Nigeria. He stated that the project is designed “to enhance national connectivity, reduce travel time, and improve the movement of goods across key economic corridors.”
The proposed superhighway will traverse multiple states, linking Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos, and stretching from Illela in the northwest to Badagry on the Atlantic coast. According to the president, the financing structure includes a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, while the Federal Government will contribute over ₦265 billion in counterpart funding to cover land acquisition, compensation, and associated infrastructure.
Tinubu further disclosed that the loan has a tenure of nine years, including a three-year grace period, with interest tied to the Chicago Mercantile Exchange SOFR plus 5.3 percent annually. He noted that the Federal Executive Council has already approved the financing plan, paving the way for legislative consideration.
Following the presentation, Akpabio referred the request to the Senate Committee on Local and Foreign Debts, mandating it to report back within one week. Endorsing the borrowing plan, the Senate President said it is “better to borrow for projects to improve road safety and foster national integration,” underscoring the strategic importance of the highway.
