President Bola Tinubu has asked the Senate to approve a $516.3 million syndicated loan from Deutsche Bank to fund construction of the Sokoto-Badagry Super Highway.

The request, contained in a letter to the Senate, seeks financing for Sections I, Phase IA and IB of the highway — about 120 kilometres of the project.

According to the President, the request complies with Sections 16 and 21 of the Debt Management Office Act.

Flagship Project Under Renewed Hope Agenda

Tinubu described the Badagry Super Highway as a flagship project of his Renewed Hope Agenda. The highway is designed to open up Nigeria’s North–South corridor through the development of about 1,000 kilometres of inland dual carriageway linking Kebbi, Niger, Kwara, Oyo, Ogun and Lagos states.

He said the project will improve connectivity, enhance road safety and network performance, cut logistics costs and travel time, and boost trade, food security and national cohesion by improving access between production zones, markets and ports. The design also accommodates future infrastructure expansion, utilities and intermodal transport integration.

*Loan Terms*
The proposed financing is backed by a partial risk guarantee from ICIEC, the insurance arm of the Islamic Development Bank. It will be supported by N265.5 billion in Federal Government counterpart funding, with additional provisions for land acquisition, compensation and supporting infrastructure.

The loan has a nine-year tenor, including a grace period of up to three years. Interest is capped at CME SOFR plus 5.3%.

Tinubu told lawmakers the financing arrangement has already been approved by the Federal Executive Council. He urged the Senate to approve the loan and include it in the borrowing plan.

Senate President Godswill Akpabio referred the letter to the Senate Committee on Local and Foreign Debts and directed it to report back within one week.