Abuja, NIGERIA — President Bola Ahmed Tinubu has formally requested the Senate’s approval for a $516.3 million foreign syndicated loan to fund the construction of the Sokoto–Badagry superhighway.
The request was contained in a letter read by Senate President Godswill Akpabio during plenary on Thursday.
The loan, to be arranged through Deutsche Bank AG, is earmarked for Sections 1, Phase 1A, and 1B of the 1,000-kilometre project.
Okay News reports that the financing is structured with a nine-year tenure, including a three-year grace period, at an interest rate of CME SOFR plus 5.3% per annum. The Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) will provide a partial risk guarantee for the facility.
President Tinubu described the superhighway as a flagship of his Renewed Hope Agenda, aimed at linking Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states. To complement the foreign loan, the Federal Government is set to provide over ₦265 billion in counterpart funding for land acquisition and compensation.
Senate President Akpabio, who referred the request to the Committee on Local and Foreign Debts for a one-week turnaround, defended the borrowing plan. He noted that securing funds for critical infrastructure is essential for “improving road safety and fostering national integration.” The Federal Executive Council (FEC) has already greenlit the financing plan as part of the 2026 fiscal strategy.
The superhighway is said to reduce travel time and enhance the movement of goods along Nigeria’s western corridor, connecting Illela in the north to Badagry in the south.
