Tinubu asks Senate for approval of $516m loan for Sokoto–Badagry highway

President Bola Ahmed Tinubu has sought the Senate’s authorization for a $516.33 million loan from Deutsche Bank to finance major portions of the proposed 1,000km Sokoto–Badagry Superhighway.

In a letter presented by Senate President Godswill Akpabio during a plenary session, Tinubu stated that the initiative aims to enhance connectivity between Nigeria’s Northwest and Southwest regions.

The highway will stretch from Illela in Sokoto State through Kebbi, Niger, Kwara, Oyo, and Ogun States, concluding in Badagry, Lagos. The loan will fund approximately 120km of Sections 1, Phase 1a, and 1b.

The financing will be through a syndicated loan arranged by Deutsche Bank AG, with a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).

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Additionally, the Federal Government will provide ₦265.54 billion in counterpart funding for land acquisition, compensation, and other associated infrastructure needs.

The loan will have a nine-year term, including a three-year grace period, with an interest rate capped at CME SOFR plus 5.3% annually. Tinubu highlighted that the Federal Executive Council has already approved this arrangement and requested the Senate to incorporate it into the borrowing plan.

The government asserts that the project will enhance safety, lower transport costs, increase trade, and bolster food security by connecting production areas to markets and ports. It will also provide space for future railway and utility corridors.

The Senate has directed its Committee on Foreign and Local Debts to review the request, with a report due within a week.