President Bola Ahmed Tinubu has formally requested Senate approval for a fresh external borrowing of $516.3 million to finance key sections of the proposed Sokoto–Badagry Super Highway.
The request was conveyed in a letter addressed to the Senate President, Godswill Akpabio, and read during plenary on Thursday.
According to the President, the loan—expected to be sourced from Deutsche Bank—will fund Sections 1, 1A and 1B of the 1,000-kilometre highway project, a flagship initiative under the administration’s infrastructure development agenda.
Tinubu explained that the project is designed to connect Nigeria’s North-West to the South-West, traversing Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos states, from Illela to Badagry. He noted that the highway is expected to significantly improve connectivity, reduce travel time and logistics costs, enhance road safety, and facilitate trade and economic integration across the corridor.
The President further disclosed that the financing plan includes a syndicated loan structure supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit. He added that the Federal Government will provide counterpart funding of ₦265.5 billion for land acquisition, compensation and related infrastructure.
The loan is expected to run for nine years, including a grace period of up to three years, with interest benchmarked at the Secured Overnight Financing Rate (SOFR) plus 5.3 per cent per annum.
Tinubu also informed lawmakers that the Federal Executive Council had already approved the financing arrangement and urged the Senate to consider and approve the request expeditiously.
During plenary, lawmakers highlighted the economic importance of the project, noting that it could reduce travel time between Sokoto and Lagos from about 13 hours to six hours.
Akpabio described the highway as a transformative infrastructure project capable of boosting economic productivity and saving lives, stressing that borrowing for critical infrastructure is justified when it delivers long-term economic value.
The Senate has since referred the request to its Committee on Local and Foreign Debts for further legislative review, with a directive to report back within one week.
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