The Senate has given the green light to a $516 million syndicated loan requested by President Bola Tinubu for the construction of Section 1, Phases 1A and 1B of the Sokoto–Badagry Super Highway.
The approval came after lawmakers reviewed a report presented during plenary by the Senate Committee on Local and Foreign Debts, led by Aliyu Wamakko. The committee advised that the facility, arranged through Deutsche Bank AG, be included in the Federal Government’s borrowing framework.
Details of the report showed that the loan carries a nine-year repayment period, including a grace window of up to three years, and is backed by a partial guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit.
During discussions, lawmakers stressed the economic and strategic value of the proposed highway. Tahir Monguno noted that the project would link three geopolitical zones and cut down travel time between the North and the South.
Senate President Godswill Akpabio explained that a previously approved $5 million request from the President had been subjected to review. He said the earlier funding plan, which involved Abu Dhabi, could not proceed due to escalating conflict in the region, making it impossible for the Federal Government to access the funds.
He added that securing a new financing option would fast-track ongoing development plans.
Lawmakers also pointed out that beyond easing transportation, the Sokoto–Badagry Super Highway is expected to improve agricultural output by enhancing access to markets, supporting dam infrastructure, and strengthening the agricultural value chain.
The Senate’s resolution is expected to be forwarded to the President for final steps.
Earlier, on April 23, President Tinubu formally wrote to the Senate seeking approval for the foreign loan to support the highway project. He requested a resolution in line with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011, to enable the Federal Government to proceed with financing the first phase of the project.
The President described the superhighway as a key component of his administration’s Renewed Hope Agenda, aimed at improving connectivity, shortening travel time, and boosting the movement of goods across major economic routes.
The planned 1,000-kilometre road will connect Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos states, stretching from Illela to Badagry.
Tinubu also stated that the loan arrangement would include a partial risk guarantee from ICIEC, while the Federal Government would contribute over ₦265 billion as counterpart funding for land acquisition, compensation, and related infrastructure.
He added that the facility is structured over nine years, including a three-year grace period, with interest tied to the Chicago Mercantile Exchange SOFR plus 5.3 per cent annually.
The House of Representatives had earlier approved the request on Tuesday.