Tinubu Seeks Fresh $516m Loan

President Bola Tinubu has formally requested the Senate’s approval for a $516.3 million loan to finance part of the ambitious Sokoto-Badagry Superhighway project.

The request was contained in a letter addressed to Senate President Godswill Akpabio and read during plenary on Thursday.

According to the President, the Sokoto-Badagry Superhighway is a 1,000-kilometre flagship infrastructure project aimed at linking Nigeria’s North-West to the South-West.

The proposed corridor is expected to run from Illela in Sokoto State, passing through Kebbi, Niger, Kwara, Oyo, and Ogun states, before terminating in Badagry, Lagos State.

Tinubu noted that the loan would specifically fund Sections 1, Phase 1a and 1b, covering about 120 kilometres of the total stretch.

The President disclosed that the financing arrangement involves a syndicated loan from Deutsche Bank AG, supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit.

He added that the Federal Government would also provide counterpart funding exceeding ₦265.5 billion to cover land acquisition, compensation, and other critical infrastructure components.

The loan is expected to span nine years, including a grace period of up to three years, with an interest rate pegged at the Chicago Mercantile Exchange Secured Overnight Financing Rate plus 5.3 per cent annually.

Tinubu emphasised that the project would significantly improve connectivity and reduce transportation challenges across the country.

He said the highway would enhance safety, cut logistics costs, and boost economic activities by linking agricultural production hubs to major markets and ports.

The President also noted that the corridor would accommodate future rail lines and utility infrastructure, further strengthening national development.

Following the presentation, Akpabio referred the request to the Senate Committee on Foreign and Local Debts for further legislative scrutiny.

He directed the committee to report back within one week.

Speaking on the development, Senator Mohammed Adamu Aliero described the project as long overdue.

“This project has been on the ground for the last 55 years. I have inspected the project, and I have seen the progress made. I am highly impressed,” he said.

Aliero added that construction works include both concrete and asphalt components, alongside solar-powered street lighting.

He further projected that the project would drastically cut travel time between Sokoto and Lagos.

“It will reduce a 13-hour journey to approximately six hours,” he stated.

The Federal Executive Council had earlier approved the loan arrangement and recommended its inclusion in Nigeria’s borrowing plan.

With the Senate now set to review the proposal, stakeholders are watching closely as the government pushes forward with one of its most ambitious road infrastructure projects.