Tinubu writes Senate, seeks approval for $516m loan

President Bola Tinubu has requested the Senate’s approval for a 516.3 million dollars syndicated loan to finance key sections of the Sokoto–Badagry Superhighway.

The Superhighway is a major infrastructure project under his administration’s Renewed Hope Agenda.

The request, is contained in a letter read during plenary on Thursday by Senate President Godswill Akpabio, seeks legislative authorisation in line with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011.

In the letter, the President outlined the scope and purpose of the proposed financing.

“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.”

Mr Tinubu specifically asked lawmakers to approve both the loan facility and its inclusion in the federal government’s borrowing plan already endorsed by the National Assembly.

“Approval is sought for the syndicated financing facility from Deutsche Bank for the execution of Sections 1, 1A, and 1B… and the inclusion of the said financing in the federal government’s borrowing plan,” the letter stated.

Mr Tinubu described the Sokoto–Badagry Superhighway as a flagship initiative aimed at unlocking Nigeria’s economic corridors.

“The Sokoto–Badagry Superhighway is a flagship infrastructure initiative designed to open up Nigeria’s northwest–southwest economic corridor through the construction of an approximately 1,000-kilometre high-capacity carriageway.”

He added that the highway will connect Sokoto to Lagos, passing through Kebbi, Niger State, Kwara, Oyo and Ogun, stretching from Illela to Badagry.

According to the President, the project is expected to deliver wide-ranging economic and social benefits.

“The project will enhance north–south connectivity and road safety, reduce logistics costs and travel time, facilitate trade and strengthen food security, and promote national integration.”

He added that provisions for future rail integration and utility corridors would ensure long-term infrastructure efficiency.

The president said the proposed financing arrangement includes a syndicated loan backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the insurance arm of the Islamic Development Bank.

He noted that the federal government is expected to provide counterpart funding of ₦265.5 billion for land acquisition, compensation and ancillary infrastructure.

Mr Tinubu said the loan will run for nine years, including a grace period of up to three years, with an interest rate capped at CME SOFR plus 5.3 percent per annum.

He noted that the Federal Executive Council has already approved the financing terms.

Following the presentation, Akpabio referred the request to the Senate Committee on Local and Foreign Debts, directing it to report back within one week.

During deliberations, Sen. Adamu Aliero (APC-Kebbi) described the superhighway as a long-awaited development.

He noted that the project, which had remained on the drawing board for over 50 years, is now becoming a reality.

“This project has been on the drawing board for more than five decades and today, it is taking shape,” he said.

Aliero revealed that he had inspected parts of the road, describing the construction quality as modern and durable.

“The superhighway is being constructed using reinforced concrete and equipped with solar-powered street lighting. It meets modern infrastructure standards,” he said.

He added that the project would significantly reduce travel time between Sokoto and Lagos:

“Travel time will drop from about 13 hours to roughly six hours, which is a major improvement.”

The senator urged his colleagues to support the initiative by approving the committee’s report once presented.

In his remarks, Akpabio endorsed the project, describing it as economically transformative.

“This is a major economic game changer capable of saving lives and boosting productivity,” he said.

He defended the Federal Government’s borrowing strategy:“Borrowing for critical infrastructure is justified, particularly where such investments yield long-term benefits and can facilitate repayment through generated value.”

NAN