President Bola Tinubu has formally requested approval from the Nigerian Senate for a new external loan of $516.3 million (approximately ₦700 billion) to support the Sokoto–Badagry Superhighway project.
The request was contained in a letter addressed to Senate President Godswill Akpabio and presented during Thursday’s plenary session. According to the communication, the loan will be sourced from Deutsche Bank and is intended to fund sections of the first phase of the 1,000-kilometre highway.
Tinubu described the road project as a major national infrastructure initiative aimed at linking the North-West to the South-West, stretching from Illela in Sokoto State through several states before terminating in Badagry, Lagos. He noted that the loan would specifically finance about 120 kilometres of the corridor.
The president explained that the facility is structured as a syndicated loan, supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, a subsidiary of the Islamic Development Bank. He also disclosed that the Federal Government would contribute counterpart funding of over ₦265 billion to cover land acquisition, compensation, and related infrastructure expenses.
Details of the financing indicate a repayment period of nine years, including a grace period of up to three years, with interest tied to the Secured Overnight Financing Rate plus an additional 5.3 percent annually. Tinubu added that the borrowing plan had already received approval from the Federal Executive Council and urged lawmakers to integrate it into the country’s broader borrowing framework.
He maintained that the project would improve connectivity, enhance road safety, lower transportation costs, and stimulate trade and economic activities by linking production centres to markets and ports.
Despite these projections, the loan request has heightened concerns over Nigeria’s rising debt levels and increasing dependence on external financing.
Following the presentation, Akpabio referred the proposal to the Senate Committee on Local and Foreign Debts for detailed review, directing it to submit its report within one week.
During deliberations, Senator Mohammed Adamu Aliero expressed support for the project, noting its long history and ongoing progress. He observed that construction includes both concrete and asphalt work, along with solar-powered streetlights, and suggested the highway could significantly reduce travel time between Sokoto and Lagos.
The latest request comes shortly after the president sought legislative approval for additional external loans amounting to $6 billion to finance budget deficits and key infrastructure projects.