Senate approves Tinubu’s $516m loan for massive Sokoto–Badagry Highway Project

The Senate has approved a $516 million syndicated loan request by President Bola Ahmed Tinubu to finance Section 1, Phases 1A and 1B of the Sokoto–Badagry Super Highway project.

The approval followed consideration of a report presented at plenary by the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko, which recommended the inclusion of the facility in the Federal Government’s borrowing plan.

The financing arrangement, structured through Deutsche Bank, is backed by a partial guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit and carries a nine-year tenor, including a grace period of up to three years.

During debate, lawmakers underscored the strategic value of the highway, describing it as a major infrastructure link expected to connect three geopolitical zones and ease travel between the northern and southern regions.

Senator Tahir Monguno noted that the project would significantly reduce travel time and improve connectivity across the country.

Explaining the funding shift, Senate President Godswill Akpabio said an earlier financing arrangement approved by the Senate through Abu Dhabi had stalled due to escalating conflict in the region, which prevented access to the funds.

He said the new loan facility would provide an alternative source of funding and help fast-track the project’s execution.

Beyond improving transportation, lawmakers said the Sokoto–Badagry Super Highway is expected to stimulate agricultural productivity by enhancing access to markets, supporting dam infrastructure and strengthening the value chain.

The Senate’s approval is expected to be transmitted to the President for final action.