President Bola Tinubu has asked the Senate to approve a fresh $516.3 million foreign syndicated loan to fund sections of the proposed Sokoto–Badagry superhighway.
The request was conveyed in a letter read on Thursday by Senate President Godswill Akpabio, seeking legislative backing in line with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011.
Tinubu said the facility, to be arranged by Deutsche Bank AG, will finance Sections 1, Phase 1A and 1B of the project.
He described the highway as a flagship project under his administration’s Renewed Hope Agenda, aimed at boosting national connectivity, cutting travel time, and improving the movement of goods along major economic corridors.
The proposed 1,000-kilometre road is expected to link Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos states, stretching from Illela to Badagry.
According to the president, the loan 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 over N265 billion as counterpart funding for land acquisition, compensation, and related infrastructure.
He added that the financing is structured over nine years, including a three-year grace period, with interest pegged at the Chicago Mercantile Exchange SOFR plus 5.3 per cent annually. The Federal Executive Council has already approved the arrangement.
Following the presentation, Akpabio referred the request to the Senate Committee on Local and Foreign Debts, directing it to report back within one week.
The Senate President also backed the move, noting that borrowing for critical infrastructure such as highways is necessary to improve road safety and promote national
