Bola Ahmed Tinubu has requested Senate approval for a fresh loan of N698 billion (about $516 million) to support the construction of the proposed Sokoto–Badagry super highway.
The request was conveyed in a letter read during plenary by Godswill Akpabio on Thursday.
The ambitious 1,000-kilometre project is designed to connect Nigeria’s Northwest to the Southwest, stretching from Illela in Sokoto State through Kebbi, Niger, Kwara, Oyo, and Ogun states, before terminating in Badagry, Lagos State.
According to the president, the loan will specifically fund Sections 1, Phase 1a and 1b of the project, covering about 120 kilometres of the total route.
He explained that the financing plan involves a syndicated loan arrangement to be secured through Deutsche Bank AG, with support from the Islamic Corporation for the Insurance of Investment and Export Credit, an arm of the Islamic Development Bank.
In addition to the loan, the Federal Government is expected to contribute over N265 billion as counterpart funding to cover land acquisition, compensation, and other supporting infrastructure.
The proposed loan has a tenure of nine years, including a grace period of up to three years, with an interest rate tied to the Chicago Mercantile Exchange SOFR plus 5.3 percent annually.
Tinubu noted that the Federal Executive Council has already approved the financing arrangement and urged the Senate to include it in the national borrowing plan.
He highlighted the strategic importance of the highway, stating that it would significantly improve connectivity between the northern and southern regions, reduce transportation costs, and enhance trade and food distribution across the country. The project is also expected to support national integration and include provisions for future rail lines and utility corridors.
Following the presentation, Akpabio referred the request to the Senate Committee on Foreign and Local Debts, which is expected to report back within one week.
Speaking on the project, Mohammed Adamu Aliero praised the initiative, describing it as a long-awaited development.
He noted that the project has been in consideration for over five decades and expressed satisfaction with the progress made so far. According to him, the completed highway could cut travel time between Sokoto and Lagos by more than 70 percent, reducing the journey from about 13 hours to roughly six hours.
He urged lawmakers to give swift approval once the committee submits its findings.
