President Bola Tinubu has formally written to the Senate, seeking approval for a $516.3 million foreign syndicated loan to support the construction of the Sokoto–Badagry highway.
In a communication read by the President of the Senate, Godswill Akpabio, on Thursday, President Tinubu requested a resolution in line with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011, to enable the Federal Government to secure the financing for Sections 1, Phase 1A, and 1B of the project. The loan facility is to be arranged through Deutsche Bank AG.
President Tinubu explained that the superhighway project is a flagship initiative under his administration’s Renewed Hope Agenda, designed to enhance national connectivity, reduce travel time, and improve the movement of goods across key economic corridors.
The proposed 1,000-kilometre road will link Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, connecting Illela to Badagry.
He noted that the financing arrangement will be backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), while the Federal Government will provide counterpart funding of over 265 billion naira for land acquisition, compensation, and related infrastructure.
According to the president, the loan is structured for nine years, including a three-year grace period, with an interest rate pegged at the Chicago Mercantile Exchange SOFR plus 5.3 per cent per annum. The Federal Executive Council has already approved the financing plan.
Following the presentation of the request at plenary, Akpabio referred the matter to the Senate Committee on Local and Foreign Debts, directing it to report back within one week.
Endorsing the move, the Senate President said that it is better to borrow for projects to improve road safety and foster national integration.