Senate Approves Tinubu’s $516 Million Loan Request For Sokoto–Badagry Super Highway

The Senate has approved President Tinubu’s $516 million loan request for the Sokoto–Badagry Super Highway, a major infrastructure project expected to boost connectivity, trade and economic growth across Nigeria.

By Chisom Adaeze

The Senate has approved President Bola Ahmed Tinubu’s request for a $516 million syndicated loan to support the construction of the Sokoto–Badagry Super Highway, one of the flagship infrastructure projects under the administration’s Renewed Hope Agenda.

The approval followed the presentation and consideration of a report by the Senate Committee on Local and Foreign Debts, chaired by Aliyu Wamakko, during plenary on Tuesday.

According to the committee, the financing arrangement — facilitated through Deutsche Bank — will now be incorporated into the Federal Government’s borrowing plan.

The loan is expected to fund Sections 1, Phases 1A and 1B of the ambitious highway project, which is designed to connect northern and southern Nigeria through a major economic corridor stretching across several states.

Lawmakers described the project as critical to national development, economic integration and improved transportation infrastructure.

Senator Tahir Monguno stated that the superhighway would connect at least three geopolitical zones while significantly reducing travel time between the North and the South.

The proposed 1,000-kilometre road is expected to link Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos states, connecting Illela in Sokoto State to Badagry in Lagos State.

Senate President Godswill Akpabio revealed that an earlier financing arrangement involving Abu Dhabi could not proceed due to escalating regional conflicts, forcing the Federal Government to seek alternative funding options.

He noted that securing fresh financing would help fast-track the implementation of the project and sustain ongoing infrastructure development efforts.

Beyond transportation benefits, lawmakers argued that the highway would boost agriculture, trade and economic activities by improving market access for farmers, enhancing logistics and supporting the broader agricultural value chain.

The project is also expected to stimulate investment opportunities and improve connectivity between major commercial and agricultural hubs across Nigeria.

In a letter sent to the Senate on April 23, President Tinubu explained that the project forms a central part of his administration’s economic and infrastructure agenda aimed at improving movement of goods, reducing transportation costs and strengthening national integration.

According to the President, the financing arrangement carries a nine-year repayment period, including a three-year grace period, and is backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit.

The Federal Government is also expected to provide counterpart funding exceeding ₦265 billion for land acquisition, compensation and supporting infrastructure linked to the project.

The House of Representatives had earlier approved the loan request before the Senate’s final approval.

With both chambers of the National Assembly now backing the proposal, the loan approval is expected to be formally transmitted to the Presidency for final implementation processes.