Tinubu Seeks Senate Approval for $516m ‘Superhighway’ Loan

President Bola Ahmed Tinubu has asked the Senate to approve a $516.3 million loan from Deutsche Bank to fund sections of the Sokoto–Badagry Superhighway.

In a letter read by Senate President Godswill Akpabio, Tinubu explained that the 1,000km project will connect Nigeria’s Northwest to the Southwest, running from Illela, Sokoto State, through Kebbi, Niger, Kwara, Oyo, and Ogun, before ending in Badagry, Lagos State.

The loan will finance Sections 1, Phase 1a and 1b, covering 120km of the corridor. The arrangement includes a syndicated loan backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).

The Federal Government will provide ₦265.5 billion in counterpart funding for land acquisition, compensation, and supporting infrastructure.

The loan has a nine-year tenor, with a grace period of up to three years, and an interest rate capped at SOFR + 5.3% per annum. Tinubu noted that the Federal Executive Council had already approved the financing plan.

He said the superhighway would improve North–South connectivity, reduce logistics costs, and strengthen trade and food security. The design also reserves the central median for future rail integration and utility corridors.

Senator Mohammed Adamu Aliero (Kebbi Central) praised the project, saying: “This project has been on the ground for the last 55 years. I have inspected the progress made and I am highly impressed.” He added that travel time from Sokoto to Lagos could be cut by more than 70%, from 13 hours to about six.

The Senate referred the request to the Committee on Foreign and Local Debts, which is expected to report back within a week before a final decision is taken.