Nigeria’s Senate has approved a $516.3 million syndicated loan request by President Bola Ahmed Tinubu to support the construction of the Sokoto–Badagry Superhighway, a flagship infrastructure project aimed at strengthening national connectivity.
The approval follows earlier concurrence by the House of Representatives and was granted after consideration of a report by the Senate Committee on Local and Foreign Debts, chaired by Magatagarda Wamakko, which recommended the request for approval.
The financing facility will be arranged through Deutsche Bank, with a partial risk guarantee provided by the Islamic Corporation for the Insurance of Investment and Export Credit, an arm of the Islamic Development Bank.
According to the President’s proposal, the Federal Government will also contribute counterpart funding of ₦265.54 billion to cover land acquisition, compensation, and related infrastructure costs.
The loan is structured with a nine-year tenor, including a grace period of up to three years, and an interest rate capped at the Chicago Mercantile Exchange Secured Overnight Financing Rate (SOFR) plus 5.3 percent per annum. The financing framework and terms had earlier received approval from the Federal Executive Council.
The Sokoto–Badagry Superhighway is envisioned as an approximately 1,000-kilometre high-capacity corridor linking Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos States, stretching from Illela to Badagry. The project is expected to enhance North–South connectivity, improve road safety, reduce travel time and logistics costs, and facilitate trade.
It is also projected to strengthen food security by connecting agricultural production zones to key markets and export routes, while promoting national integration. The design further incorporates provisions for future rail lines and utility infrastructure.
The Senate’s approval was reached unanimously during plenary, presided over by Senate President Godswill Akpabio.
Key lawmakers, including Deputy Senate President Barau Jibrin, Chief Whip Mohammed Monguno, and Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, Adetokumbo Abiru, described the project as a critical component of the administration’s infrastructure and economic development agenda.
