Tinubu Seeks Senate Approval for $516M Sokoto-Badagry Superhighway Loan

President Bola Tinubu has formally written to the Senate requesting approval for a $516.3 million foreign syndicated loan to fund sections of the Sokoto-Badagry Superhighway, one of his flagship infrastructure projects.

The request, read on the Senate floor by Senate President Godswill Akpabio, covers Sections 1, Phase 1A and 1B of the project. The loan is to be arranged through Deutsche Bank AG, in line with Sections 16 and 21 of the Debt Management Office Act, 2011.

Loan terms and FG counterpart

The $516.3 million facility runs for nine years with a three-year grace period. Interest is pegged at the Chicago Mercantile Exchange SOFR plus 5.3 per cent per annum. A partial risk guarantee comes from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).

The Federal Government will provide counterpart funding of over ₦265 billion for land acquisition, compensation, and related infrastructure. The Federal Executive Council has already approved the financing plan.

1,000km corridor

The proposed 1,000-kilometre road links Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, connecting Illela to Badagry. Tinubu described it as a flagship project under his Renewed Hope Agenda, designed to cut travel time and open up trade routes across the country.

Akpabio referred the request to the Senate Committee on Local and Foreign Debts with a one-week reporting deadline, adding that it is “better to borrow for projects.”

Sources: Channels TV, Punch, TheNiche