Tinubu asked lawmakers to approve a $516,333,007 financing package from Deutsche Bank and incorporate it into the federal government’s existing borrowing plan already endorsed by the legislature.
By Deborah Hassan
365Daily – The Senate on Thursday received President Bola Ahmed Tinubu’s request for approval of a $516.33 million foreign loan to fund key sections of the proposed Sokoto–Badagry Superhighway.
The request, read at plenary, seeks a National Assembly resolution in line with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011, to enable the federal government secure a syndicated loan facility for Sections 1, 1A and 1B of the project.
Tinubu asked lawmakers to approve a $516,333,007 financing package from Deutsche Bank and incorporate it into the federal government’s existing borrowing plan already endorsed by the legislature.
In a move that underscores the urgency attached to the project, the Senate referred the request to its Committee on Local and Foreign Debts, directing it to report back within one week.
The Sokoto–Badagry Superhighway, a roughly 1,000-kilometre corridor, is designed to link Illela in Sokoto State to Badagry in Lagos State, traversing Kebbi, Niger, Kwara, Oyo and Ogun states.
The president said the project is expected to improve road safety, reduce travel time and logistics costs, facilitate trade, boost food security and promote national integration by linking production centres to major markets and ports. The design also accommodates future rail integration and utility corridors.
Tinubu explained that the loan would be arranged by Deutsche Bank AG as a syndicated facility, with a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), an arm of the Islamic Development Bank.
He disclosed that the federal government would provide N265.54 billion as counterpart funding for land acquisition, compensation and ancillary infrastructure.
According to the proposal, the loan has a tenure of nine years, including a grace period of up to three years, and carries an interest rate pegged at the Chicago Mercantile Exchange Secured Overnight Financing Rate (SOFR) plus 5.3 per cent per annum. The Federal Executive Council has already approved the financing structure.
During deliberations, Senator Adamu Aliero (Kebbi Central) described the highway as a long-delayed project that had remained on the drawing board for over five decades, noting that sections are already under construction.
He said the use of reinforced concrete and solar-powered street lighting reflects modern infrastructure standards, adding that the project would reduce travel time between Sokoto and Lagos from about 13 hours to six hours.
Senate President Godswill Akpabio, who presided over the session, backed the proposal, describing it as an economic game changer capable of saving lives and boosting productivity.
He maintained that borrowing for critical infrastructure is justified where it delivers long-term economic returns and strengthens the country’s repayment capacity.
The Senate leadership has mandated its Committee on Local and Foreign Debts to expedite consideration of the request, paving the way for swift legislative approval.