Senate considers $516m foreign loan reaquest for Sokoto–Badagry Superhighway
Senate yesterday began legislative consideration of President Bola Ahmed Tinubu’s request of a $516.3 million foreign loan to finance sections of the proposed Sokoto – Badagry Superhighway. The road is
Senate yesterday began legislative consideration of President Bola Ahmed Tinubu’s request of a $516.3 million foreign loan to finance sections of the proposed Sokoto – Badagry Superhighway.
The road is one of the flagship infrastructure projects being undertaking by the Tinubu administration’s Renewed Hope Agenda (RHA).
The request, contained in a formal communication to the upper chamber, seeks the National Assembly’s resolution to approve a syndicated loan facility arranged through Deutsche Bank AG for the execution of Sections 1, 1A and 1B of the project.
In the letter read at plenary by Senate President Godswill Akpabio, the President said the approval was being sought pursuant to Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011, as well as for the inclusion of the facility in the Federal Government’s borrowing plan earlier endorsed by lawmakers.
The letter reads: “The purpose of this communication is to formally request the resolution of the National Assembly… to approve a proposed foreign financing arrangement of a syndicated loan facility of US$516,333,007 for the construction of the Sokoto–Badagry Superhighway Project.”
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He described the project as a strategic initiative designed to open up the Northwest - Southwest economic corridor through the construction of an approximately 1,000-kilometre high-capacity carriageway, linking Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos States, stretching from Illela in Sokoto to Badagry, Lagos.
According to him, the superhighway is expected to “enhance north–south connectivity and road safety, reduce logistics costs and travel time, facilitate trade, strengthen food security and promote national integration.”
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The President further explained that the facility would be backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), while the Federal Government would provide counterpart funding of about N265.5 billion for land acquisition, compensation and ancillary infrastructure.
He added that the facility has a tenure of nine years, including a grace period of up to three years, with an interest rate not exceeding the Chicago Mercantile Exchange SOFR plus 5.3 per cent per annum.
Following the presentation, the Senate referred the request to its Committee on Local and Foreign Debts for further legislative action, directing it to report back within one week.
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Senator Adamu Aliero, who described the project as long overdue, noted that it had remained on the drawing board for over five decades.
“I commend Mr. President for initiating what I call a landmark project. This is a project that has been in contemplation for more than 50 years, and today it is becoming a reality,” Aliero said.
The Kebbi Central senator said that he had personally inspected sections of the road (already completed and under construction), adding that the use of reinforced concrete and solar-powered street lighting reflects modern infrastructure standards.
He said: “This superhighway will drastically reduce travel time between Sokoto and Lagos from about 13 hours to approximately six hours.
“It will transform economic activities across the northwest, north-central and southwest,” he added, urging lawmakers to support the approval when the committee submits its report.
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Akpabio described the project as a major economic catalyst capable of boosting productivity and saving lives.
“This is a major economic game changer. Borrowing for critical infrastructure like this is justified, especially when it will generate long-term economic benefits and improve the quality of life for Nigerians,” the Senate President said.
He stressed the need for expedited legislative action, urging the committee to fast-track its review to enable timely consideration by the Senate.
Akpabio directed the committee to conclude its work within one week, signaling lawmakers’ readiness to advance the project seen as critical to national integration and economic growth.
