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President Bola Tinubu has asked the Senate to approve a $516,333,070 external loan to fund sections of the Sokoto-Badagry Super Highway, according to a letter read during Thursday’s plenary session.
The loan, to be sourced from Deutsche Bank, will finance the construction of Sections 1, 1A and 1B of the 1,000-kilometre highway, the letter stated.
“Specifically, approval is sought for the syndicated financing facility from Deutsche Bank in the total sum of US$516,333,007 for the execution of Sections 1, 1A, and 1B of the Sokoto–Badagry Superhighway Project,” the letter read.
“The inclusion of the said financing in the federal government’s borrowing plan, as earlier approved by the National Assembly. The Senate is invited to note that the Sokoto–Badagry Superhighway is a flagship infrastructure initiative under the Renewed Hope Agenda.”
The project will traverse Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos states, stretching from Illela to Badagry.
According to Tinubu, the road is expected to improve north-south connectivity, enhance road safety, boost network performance along the corridor, lower logistics costs and travel time, ease trade, strengthen food security, and promote national integration by connecting production zones to markets and ports.
“The project is designed to open up Nigeria’s northwest–southwest economic corridor through the construction of an approximately 1,000-kilometre high-capacity carriageway, linking Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos States, stretching from Illela to Badagry,” he stated.
“It is also expected to enhance north–south connectivity and road safety, improve network performance along the corridor, reduce logistics costs and travel time, facilitate trade and strengthen food security and promote national integration by linking production zones to markets and ports.”
Tinubu said the financing structure includes a syndicated loan backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit.
He added that the government will provide counterpart funding of ₦265.5 billion for land acquisition, compensation and related infrastructure.
The loan will run for nine years, including a grace period of up to three years, with an interest rate benchmarked at the Chicago Mercantile Exchange SOFR plus 5.3 percent per annum, according to him.
The Federal Executive Council has approved the financing arrangement, Tinubu added. He urged the Senate to fast-track the request.
“I look forward to the expeditious consideration and approval of this request by the Senate. Please accept, Distinguished Senate President and Distinguished Senators, the assurances of my highest regards,” the statement added
