Both Chambers Approve: Senate Clears Tinubu’s $516m Loan for Sokoto–Badagry Superhighway

The Nigerian Senate on Wednesday approved President Bola Tinubu’s $516.3 million syndicated loan for the construction of Section 1, Phases 1A and 1B of the Sokoto–Badagry Super Highway — completing bicameral approval one day after the House of Representatives did the same.

The Senate’s green light came after consideration of a report by Senator Aliyu Wamakko’s Committee on Local and Foreign Debts, which recommended the financing be incorporated into the Federal Government’s borrowing plan.

Loan Terms

The deal is arranged through Deutsche Bank AG, with a partial credit guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). It carries a nine-year tenor with a grace period of up to three years.

Senate President Godswill Akpabio explained why an alternative financing source was needed: an earlier $5 billion arrangement through Abu Dhabi had stalled because of escalating conflict in the region, leaving the Federal Government unable to draw on those funds. Deutsche Bank is the replacement.

Why the Road Matters

Senator Tahir Monguno described the Sokoto–Badagry Super Highway as one of Nigeria’s most strategically placed infrastructure projects — connecting three geopolitical zones and slashing travel time between the north and south. Lawmakers also pointed to downstream gains: better market access for farmers, support for dam development, and a stronger agricultural value chain across the corridor.

With both chambers now signed off, the approval heads to the President for final action. Whether that satisfies critics like Atiku Abubakar, who called the deal a “debt trap” last week, is another matter entirely.

Sources: Channels Television, TheCable, AllAfrica, Guardian Nigeria