Tinubu Seeks Senate Approval for $516m Loan to Advance Sokoto–Badagry Superhighway Project

Nigeria is moving a step closer to transforming its national road network, as President Bola Ahmed Tinubu has formally requested Senate approval for a $516 million external loan to support the construction of the ambitious Sokoto–Badagry Superhighway. The request, presented in a letter to Senate President Godswill Akpabio, underscores the federal government’s commitment to improving connectivity across the country.

The proposed funding, to be secured from Deutsche Bank, will be used to execute key portions of the project, specifically Sections 1, Phase 1a and 1b. These segments cover approximately 120 kilometers of the planned 1,000-kilometer highway, which is designed to link Nigeria’s northwest to its southwest corridor.

Stretching from Illela in Sokoto State to Badagry in Lagos, the superhighway will pass through several key states, including Kebbi, Niger, Kwara, Oyo, and Ogun. Once completed, the project is expected to significantly enhance transportation efficiency, reduce travel time, and strengthen economic ties between major regions of the country.

According to the President, the financing structure involves a syndicated loan backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, an arm of the Islamic Development Bank. In addition to the external funding, the federal government has committed over ₦265 billion as counterpart funding to cover land acquisition, compensation, and supporting infrastructure.

The loan is structured over a nine-year period, including a grace window of up to three years. Its interest rate is tied to the Chicago Mercantile Exchange’s SOFR benchmark, with a margin of 5.3 percent annually. The Federal Executive Council has already approved the arrangement, and the President is seeking legislative backing to include it in Nigeria’s broader borrowing plan.

Beyond infrastructure development, the Sokoto–Badagry Superhighway is expected to deliver far-reaching economic benefits. It aims to improve the movement of goods and people, boost trade, enhance food security, and promote national integration by connecting production hubs to key markets and export routes. The project also includes provisions for future rail lines and utility corridors, reflecting a forward-thinking approach to long-term development.

During plenary, Senate President Akpabio referred the request to the Committee on Foreign and Local Debts for review, with a report expected within a week. Lawmakers have already begun expressing support, with Senator Mohammed Adamu Aliero describing the project as a long-overdue development that has been in consideration for more than five decades.

Aliero, who recently inspected sections of the construction, highlighted the quality of ongoing work, noting the use of both concrete and asphalt, as well as the installation of solar-powered streetlights. He added that the highway could cut travel time between Sokoto and Lagos by more than 70 percent, reducing a journey that currently takes about 13 hours to roughly six.

As Nigeria continues to invest in large-scale infrastructure, the Sokoto–Badagry Superhighway stands out as a transformative project with the potential to reshape mobility, drive economic growth, and strengthen unity across the nation.