By Ayomide Otitoju
President Bola Ahmed Tinubu has formally written to the Senate, seeking approval for a $516.3 million foreign syndicated loan to support the construction of the Sokoto–Badagry highway.
The request was conveyed in a letter read at plenary on Thursday by the President of the Senate, Godswill Akpabio, in line with Sections 16 and 21 of the Debt Management Office (Establishment) Act 2011. The approval would enable the Federal Government to secure funding for Sections 1, Phase 1A and 1B of the project, with the facility to be arranged by Deutsche Bank AG.
Tinubu described the superhighway as a flagship initiative under his administration’s Renewed Hope Agenda, aimed at boosting national connectivity, reducing travel time, and improving the movement of goods along key economic corridors.
The proposed 1,000-kilometre road is expected to link Sokoto State, Kebbi State, Niger State, Kwara State, Oyo State, Ogun State, and Lagos State, connecting Illela to Badagry.
According to the President, the financing arrangement will be backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, while the Federal Government will provide counterpart funding exceeding ₦265 billion for land acquisition, compensation, and related infrastructure.
He added that the loan is structured over nine years, including a three-year grace period, with an interest rate pegged at the Chicago Mercantile Exchange SOFR plus 5.3 per cent per annum. The Federal Executive Council has already approved the financing plan.
Following the presentation, Akpabio referred the request to the Senate Committee on Local and Foreign Debts, directing it to report back within one week. He also endorsed the proposal, noting that borrowing for infrastructure projects is necessary to enhance road safety and promote national integration.
