President Bola Tinubu has asked the National Assembly to approve a $516,333,007 external loan to finance key segments of the Sokoto-Badagry superhighway project.
The request, conveyed in a letter to Senate President Godswill Akpabio, was read during plenary on Thursday.
Tinubu explained that the facility, expected to be sourced through a syndicated arrangement led by Deutsche Bank, will be used to fund sections 1, 1A, and 1B of the highway, covering approximately 120 kilometres.
He also urged lawmakers to incorporate the proposed borrowing into the federal government’s existing borrowing plan already approved by the legislature.
Describing the project as a major component of his administration’s “Renewed Hope” agenda, Tinubu said the Sokoto-Badagry corridor is designed to connect economic hubs across the north-west and south-west through a nearly 1,000-kilometre highway stretching from Illela to Badagry, passing through states including Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos.
“The proposed financing arrangement comprises a syndicated loan to be secured through Deutsche Bank AG, supported 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,” the letter reads.
The president disclosed that the federal government will provide counterpart funding of N265,542,689,569 to cover land acquisition, compensation, and other related infrastructure.
He added that the loan has a tenure of nine years, including a grace period of up to three years, with interest capped at the Chicago Mercantile Exchange SOFR plus 5.3 percent annually.
Tinubu highlighted the expected benefits of the project, noting that it would enhance connectivity along the corridor, reduce transport costs and travel time, boost trade, and strengthen food security. He also said it would support national integration by linking production centres to markets and ports, while allowing for future rail and utility infrastructure along the route.
He urged the Senate to act promptly on the request.
Following the presentation, Akpabio referred the proposal to the Senate Committee on Local and Foreign Debts for further consideration.
