Tinubu seeks Senate’s approval of $516m to fund Sokoto–Badagry superhighway

By Daud AbusiOdumare

President Bola Tinubu has approached the Senate for approval to secure a 516.3 million dollar foreign syndicated loan to fund key sections of the proposed Sokoto–Badagry superhighway.

The request was conveyed in a letter read on the Senate floor on Thursday by Senate President Godswill Akpabio. In the correspondence, Tinubu sought legislative backing in line with Sections 16 and 21 of the Debt Management Office Act, 2011, to facilitate the financing of Sections 1, Phase 1A and 1B of the road project. The loan is expected to be arranged by Deutsche Bank AG.

The President described the highway as a strategic pillar of his Renewed Hope Agenda, noting that it is aimed at strengthening national connectivity, cutting travel time, and easing the movement of goods along major economic routes.

Spanning about 1,000 kilometres, the road will connect Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos states, linking Illela in the North West to Badagry on the Atlantic coast.

Tinubu further explained that the facility will be supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, while the Federal Government will provide over 265 billion naira as counterpart funding for land acquisition, compensation and other related works.

He added that the loan has a nine year tenor, including a three year grace period, with an interest rate tied to the Secured Overnight Financing Rate plus 5.3 percent annually. The Federal Executive Council has already given its approval for the borrowing plan.

After the letter was presented, Akpabio referred the request to the Senate Committee on Local and Foreign Debts for further scrutiny, directing the panel to report back within one week.

The Senate President, while backing the proposal, said borrowing for infrastructure projects remains necessary to improve road safety and promote national unity.