By: Chioma Madonna Ndukwu
Tinubu Moves to Secure $516m Loan for Ambitious Sokoto–Badagry Superhighway
Bola Tinubu has approached the Senate for approval to obtain a $516.3 million external loan aimed at funding key phases of the proposed Sokoto–Badagry highway project.
The request was presented during plenary on Thursday by Godswill Akpabio, who read the president’s communication to lawmakers.
The approval is being sought in line with provisions of the Debt Management Office Act, allowing the Federal Government to proceed with financing arrangements for Sections 1, Phase 1A and 1B of the road project. The facility is expected to be arranged through Deutsche Bank AG.
According to the proposal, the highway is a major component of the administration’s development agenda, designed to improve connectivity across the country, ease transportation challenges, and enhance trade routes linking different regions.
Stretching approximately 1,000 kilometres, the road will connect several states, including Sokoto State, Kebbi State, Niger State, Kwara State, Oyo State, Ogun State, and Lagos State, creating a corridor from Illela to Badagry.
The financing structure includes a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, while the Nigerian government will provide counterpart funding exceeding ₦265 billion to cover land acquisition, compensation, and other associated costs.
Details of the loan indicate a tenure of nine years, including a three-year grace period, with interest tied to the Secured Overnight Financing Rate plus 5.3 percent annually. The Federal Executive Council has already endorsed the funding plan.
Following its presentation, the Senate President referred the proposal to the Committee on Local and Foreign Debts for further review, with a directive to report back within one week, expressed support for the move, noting that borrowing for infrastructure development, particularly road projects, can significantly improve safety and strengthen national integration.
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