President Bola Tinubu has asked the Senate to approve a $516m foreign loan. According to him, the loan is to help fund parts of the planned Sokoto–Badagry super highway.
The request was sent in a letter to Senate President Godswill Akpabio and read during Thursday’s plenary, opening the door for lawmakers to review the plan. Tinubu said the loan, expected from Deutsche Bank, will be used to build Sections 1, 1A, and 1B of the nearly 1,000-kilometre road linking the North-West to the South-West.
In the letter, he wrote, “Approval is sought in the total sum of $516,333,007 for the execution of Sections 1, 1A, and 1B of the Sokoto–Badagry Superhighway Project.”
He added that the funding request is already part of the government’s borrowing plan earlier approved by the National Assembly, describing the highway as a flagship infrastructure initiative under the Renewed Hope Agenda.
The President explained that the road will pass through Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, running from Illela to Badagry. According to him, the project is meant to boost connections between regions and improve economic activity.
“It is also expected to enhance north–south connectivity and road safety, improve network performance… reduce logistics costs and travel time, facilitate trade and strengthen food security,” he said.
Tinubu also revealed that the loan will be supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, while the Federal Government will provide M265.5bn for land acquisition and compensation.
He said the loan will last nine years, including up to three years of grace, with interest tied to international market rates. Tinubu noted that the Federal Executive Council has already approved the loan.
