The Senate has approved President Bola Tinubu’s request to secure a $516.3 million syndicated loan for the construction of Sections I, Phase IA and IB of the Sokoto–Badagry Super Highway, covering approximately 120 kilometres.
The approval comes less than ten days after the President transmitted the request to the National Assembly, in line with Sections 16 and 21 of the Debt Management Office Establishment Act.
The decision follows the consideration and adoption of a report by the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko.
The committee recommended that the financing, arranged through Deutsche Bank be incorporated into the Federal Government’s borrowing plan.
According to the report, the loan is backed by a partial guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), with a tenor of nine years, including a grace period of up to three years.
During plenary, lawmakers underscored the strategic importance of the project.
Senator Tahir Monguno described the highway as critical to Nigeria’s socio-economic development, noting that it would unlock economic opportunities, create jobs across the agricultural value chain, and help address unemployment and insecurity.
He added that the road would connect the North-West, North-Central, and South-West regions, significantly reducing travel time and boosting trade.
Also contributing, Senator Adetokun Abiru highlighted the project’s national impact, noting that it cuts across nearly seven states and strengthens connectivity between the North and South.
Senate President Godswill Akpabio explained that the earlier $5 billion facility, expected from Abu Dhabi, had stalled due to escalating geopolitical tensions in the Middle East, which prevented any drawdown.
He noted that securing alternative funding sources had become necessary to sustain ongoing infrastructure projects.
Lawmakers also noted that beyond improving transportation, the Sokoto–Badagry Super Highway is expected to boost agricultural productivity by enhancing access to markets, supporting dam development, and strengthening the agricultural value chain.
President Tinubu has described the project as a flagship initiative under his Renewed Hope Agenda.
The highway is designed to span about 1,000 kilometres, linking Kebbi, Niger, Kwara, Oyo, Ogun and Lagos States, with the aim of improving connectivity, reducing logistics costs, enhancing safety, and strengthening trade and food security.
The proposed financing also includes Federal Government counterpart funding of N265.5 billion, alongside provisions for land acquisition, compensation, and supporting infrastructure.
The loan carries an interest rate of CME SOFR plus 5.3 percent.
The Senate’s approval is expected to be transmitted to the President for final action.
(Editor: Anoyoyo Ogiagboviogie)
