Dare Babalola
President Bola Ahmed Tinubu has formally requested the Senate’s approval for a fresh external borrowing of $516.3 million to finance the Sokoto–Badagry Super Highway project, a major infrastructure component of his administration’s Renewed Hope Agenda.
The request was contained in a letter transmitted to the upper chamber, in which the president explained that the proposed facility would be sourced through a syndicated financing arrangement led by Deutsche Bank.
According to the proposal, the funds will be deployed to finance Sections I, Phase IA and IB of the highway project, covering approximately 120 kilometres of construction work along the planned corridor.
Tinubu said the borrowing aligns with relevant provisions of the Debt Management Office Act, specifically Sections 16 and 21, which govern public sector external borrowing and debt sustainability procedures.
He described the Sokoto–Badagry Super Highway as a strategic national infrastructure project designed to strengthen economic integration across Nigeria’s northern and southern regions.
The full project spans about 1,000 kilometres of dual carriageway, linking Sokoto through Kebbi, Niger, Kwara, Oyo, Ogun and terminating in Lagos State.
According to the president, the highway is expected to significantly improve national connectivity, enhance road safety, reduce travel time, and lower logistics costs across major transport corridors.
He further noted that the project would facilitate trade expansion and strengthen food supply chains by improving the movement of goods between agricultural production zones, major markets, and export gateways, including seaports.
The design of the highway, he added, also includes provisions for future expansion, such as utility corridors and integration with other transport infrastructure systems.
The financing arrangement includes a partial risk guarantee provided by the Islamic Corporation for the Insurance of Investment and Export Credit, a subsidiary of the Islamic Development Bank.
It also incorporates federal government counterpart funding estimated at N265.5 billion, alongside allocations for land acquisition, compensation, and related infrastructure works.
The loan terms indicate a repayment period of nine years, with a grace period of up to three years. Interest will be calculated at CME SOFR plus 5.3 per cent.
President Tinubu also informed lawmakers that the Federal Executive Council had already approved the financing structure and urged the National Assembly to incorporate it into Nigeria’s overall borrowing framework.
Following the presentation of the request, Senate President Godswill Akpabio referred the proposal to the Senate Committee on Local and Foreign Debts, instructing the committee to review and report back within one week.
