By Abbanobi -Eku Onyeka
Abuja
The Nigerian Senate has approved President Bola Tinubu’s request to borrow $516,333,007 for the construction of sections of the Sokoto-Badagry Superhighway.
The approval followed the presentation and consideration of the report by the Senate Committee on Local and Foreign Debts. Senator Adamu Aliero of Kebbi Central presented the report during Wednesday’s plenary.
After the presentation, senators who spoke commended President Tinubu for his drive in infrastructure development, which necessitated the borrowing. They described the project as critical to national growth.
Senator Tahir Monguno of Borno North said the loan is deserving because the project is central to the country’s economic development. He noted that the superhighway will unlock the agricultural value chain, create employment, and deepen the Federal Government’s revenue base.
According to Monguno, the superhighway links three geopolitical zones: North West, North Central, and South West. He added that it will create micro-economic businesses along the corridors and open new trade opportunities among the regions.
Senator Adetokunbo Abiru of Lagos East supported the approval and said the superhighway will create a strong network of connectivity between the north and the south.
Deputy Senate President Jibrin Barau said President Tinubu meant well for the country’s development in seeking the loan. He described the President as an accountant, financial expert, and administrator whose resolve to transform Nigeria into a prosperous nation should be commended.
Barau explained that apart from providing another access road between the northern and southern parts of the country, the road will enhance economic activities between the two regions when completed.
Senate President Godswill Akpabio commended Tinubu for seeking foreign financing for the project, citing its socio-economic impact. He said the project will enable construction of dams along the corridor that will enhance agricultural development and value chains.
Akpabio added that the Senate is ready to assist the President in realising his developmental plans by approving requests of economic importance to the nation.
President Tinubu had last Thursday sought the National Assembly’s approval for a $516,333,007 syndicated financing from Deutsche Bank AG for the construction of the Sokoto-Badagry Superhighway Project, Section 1, Phase 1A and 1B.
The President said the superhighway is a flagship infrastructure initiative under the Renewed Hope Agenda. The 1,000-kilometre high-capacity carriageway will link Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, stretching from Illela to Badagry.
He explained that the proposed financing arrangement comprises a syndicated loan secured through Deutsche Bank AG, supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, the insurance arm of the Islamic Development Bank.
The Federal Government will provide counterpart funding of ₦265,542,689,569 to cover land acquisition, compensation, and ancillary infrastructure. The loan has a nine-year tenure, including a grace period of up to three years, with an interest rate not exceeding the Chicago Mercantile Exchange SOFR plus 5.3 percent per annum.
Tinubu said the project would improve network performance, reduce logistics costs and travel time, facilitate trade, strengthen food security, and promote national integration by linking production zones to markets and ports. The six-lane infrastructure plan features rail integration and concrete technology, designed to link Nigeria’s Sahel region to the coastal economic hub of Badagry.
The Federal Executive Council has already approved the financing arrangement and its terms. The administration maintained that borrowing is necessary to bridge the infrastructure gap and stimulate industrial development, as the national budget alone cannot cover these legacy projects.
