The Senate on Wednesday received a formal request from President Bola Ahmed Tinubu seeking legislative approval for a foreign financing arrangement of $516,333,007 for the construction of the Sokoto–Badagry Superhighway project. The request, read during plenary, aligns with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011, and seeks approval for a syndicated loan facility to fund Sections 1, 1A, and 1B of the project.
Loan Details and Counterpart Funding
According to the presidential communication, the facility is to be arranged through Deutsche Bank AG, with support from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the insurance arm of the Islamic Development Bank, which will provide a partial risk guarantee. The Federal Government will also provide counterpart funding of ₦265.5 billion, earmarked for land acquisition, compensation, and ancillary infrastructure. The loan is structured with a nine-year tenure, including a grace period of up to three years, and carries an interest rate not exceeding the Chicago Mercantile Exchange (CME) SOFR plus 5.3 per cent per annum.
Strategic Importance
President Tinubu noted that the financing has already received approval from the Federal Executive Council and is part of the administration’s Renewed Hope infrastructure agenda. The proposed Sokoto–Badagry Superhighway is a flagship national project designed to connect Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos States, stretching from Illela to Badagry. The project, spanning approximately 1,000 kilometres, is expected to enhance north–south connectivity, improve road safety, reduce travel time and logistics costs, facilitate trade, and strengthen food security. It also includes provisions for future rail integration and utility corridors.
Senate Debate and Support
Following the presentation, Senate President Godswill Akpabio referred the request to the Committee on Local and Foreign Debts, directing it to report back within one week. Contributing to the debate, Senator Adamu Aliero described the project as a long-awaited national infrastructure milestone that has been on the drawing board for over five decades. He said portions of the road already completed or under construction reflect modern engineering standards, including reinforced concrete pavement and solar-powered lighting systems. Aliero noted that the highway would significantly reduce travel time between Sokoto and Lagos from about 13 hours to roughly six hours, describing it as transformative for regional trade and integration. He urged colleagues to support swift approval of the committee's report.
