Tinubu Requests Senate Approval For New $516 Million Loan

According to Ireporter Online, President Bola Ahmed Tinubu has requested the approval of the Senate for a $516.3 million loan aimed at financing a segment of the Sokoto–Badagry Superhighway project.

The request was contained in a formal letter addressed to Senate President Godswill Akpabio and was read during Thursday’s plenary session. The President explained that the project is a major 1,000-kilometre highway designed to improve connectivity between Nigeria’s North-West and South-West regions.

The proposed corridor will stretch from Illela in Sokoto State, passing through Kebbi, Niger, Kwara, Oyo, and Ogun States, before terminating in Badagry, Lagos State. The loan is expected to fund Sections 1, Phase 1a and 1b, covering about 120 kilometres of the entire project.

Tinubu disclosed that the financing plan involves a syndicated facility from Deutsche Bank AG, supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit. He also noted that the Federal Government would contribute over ₦265.5 billion as counterpart funding for land acquisition, compensation, and related infrastructure works.

The loan arrangement, which has already received approval from the Federal Executive Council, is being incorporated into the national borrowing framework. It carries a nine-year repayment period, including a grace period of up to three years, with an interest rate tied to the Chicago Mercantile Exchange SOFR plus 5.3 per cent annually.

The President stated that the project is expected to enhance national connectivity, improve road safety, and reduce logistics and transportation costs. He further added that it would strengthen trade, boost food security, and promote national integration by linking key production areas to major markets and seaports, while also allowing for future rail and utility expansions.

Following the submission, Senate President Godswill Akpabio referred the request to the Senate Committee on Foreign and Local Debts, directing it to present its report within one week.

Reacting to the development, Senator Mohammed Adamu Aliero described the project as long overdue, noting that it has been in conception for over five decades. He expressed satisfaction with the progress so far, stating that sections of the road include both concrete and asphalt construction, alongside the installation of solar-powered streetlights.

Aliero also projected that the completed highway would significantly reduce travel time between Sokoto and Lagos, cutting the journey from about 13 hours to approximately six hours.