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From Adesuwa Tsan, Abuja
The Nigerian Senate has granted approval to President Bola Tinubu’s request to secure a $516,333,007 external loan for the construction of key sections of the Sokoto–Badagry Superhighway, a flagship infrastructure project under the Renewed Hope Agenda.
The approval followed the consideration of a report by the Senate Committee on Local and Foreign Debts, presented during Wednesday’s plenary by Senator Adamu Aliero of Kebbi Central.
During deliberations, lawmakers across the chamber backed the proposal, describing the project as a strategic investment in national development and economic integration.
Senate Whip Tahir Monguno, while calling for approval of the loan, argued that the highway would serve as a catalyst for economic expansion, stressing its potential to unlock agricultural value chains, generate employment opportunities and strengthen government revenue.
He noted that the corridor connects the North West, North Central and South West regions, adding that it would stimulate micro-business activities and cross-regional trade.
Similarly, Adetokunbo Abiru supported the approval, describing the highway as a major infrastructure link that would improve connectivity between northern and southern Nigeria and enhance economic coordination.
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In his submission, Deputy Senate President Jibrin Barau praised the President’s initiative, describing him as a financial expert and administrator with a clear vision for national transformation. He said the project would ease movement between regions and significantly boost commercial activities nationwide.
On his part, Senate President Godswill Akpabio commended the administration for seeking structured foreign financing, noting that the project’s economic and agricultural benefits justified the borrowing plan. He added that the highway corridor could also support irrigation infrastructure, such as dams, which would further enhance agricultural productivity and value chains.
President Tinubu had last week formally requested National Assembly approval for the syndicated financing arrangement through Deutsche Bank AG, backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit under the Islamic Development Bank framework.
The 1,000-kilometre superhighway is designed to connect Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos States, running from Illela to Badagry. It forms part of the government’s broader plan to improve national logistics networks, reduce transport costs and strengthen trade corridors linking production zones to markets and ports.
The Federal Government will provide counterpart funding of ₦265.5 billion to cover land acquisition, compensation and related infrastructure works. The facility carries a nine-year repayment period, including a grace period of up to three years, with interest pegged at SOFR plus 5.3 percent.
According to the presidency, the project also includes provisions for rail integration and durable concrete pavement technology, aimed at improving long-term sustainability and regional connectivity.
The Federal Executive Council had earlier approved the financing structure, with the administration maintaining that external borrowing remains necessary to close Nigeria’s infrastructure deficit and accelerate industrial development beyond what annual budgets can support.
