President Bola Tinubu has asked the National Assembly to approve a new foreign loan of about 516 million dollars to fund part of the Sokoto to Badagry superhighway project.
His request was presented in a formal letter to the Senate and read during Thursday’s plenary session by Senate President Godswill Akpabio.
In the letter, the president explained that the money would come from a syndicated financing arrangement led by Deutsche Bank. The total facility stands at 516,333,007 dollars and is intended to cover sections 1, 1A and 1B of the highway construction.
Tinubu said the request follows legal provisions under the Debt Management Office Act of 2011, which requires approval from the National Assembly for such borrowing. He also noted that the loan had already been included in the federal government’s borrowing plan previously approved by lawmakers.
The Sokoto to Badagry superhighway is described as one of the key infrastructure projects under the administration’s Renewed Hope Agenda. The road is planned to stretch for about 1000 kilometres, connecting several states including Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos. It will run from Illela in the northwest to Badagry in the southwest.
According to the president, the highway is expected to improve travel between the northern and southern parts of the country, make roads safer and reduce the time and cost of transporting goods. It is also aimed at boosting trade, improving access to markets and strengthening food supply across regions.
The project is designed to link major production areas to ports and commercial centres, helping businesses move goods more efficiently. It will also allow for future expansion, including rail connections and space for utilities.
The financing plan includes support from the Islamic Corporation for the Insurance of Investment and Export Credit, which will provide a partial risk guarantee. This body is part of the Islamic Development Bank Group.
In addition to the foreign loan, the federal government will contribute over 265 billion naira as counterpart funding. This will cover land acquisition, compensation for affected communities and other supporting infrastructure.
The loan is expected to run for nine years, with a grace period of up to three years before repayment begins. The interest rate is set at a variable level linked to the SOFR benchmark, plus a margin of 5.3 percent per year.
Tinubu also confirmed that the Federal Executive Council has already approved the financing terms. He is now seeking final approval from the National Assembly to move forward with securing the loan and continuing the highway project.
