President Bola Tinubu has formally requested Senate approval for a $516.3 million external loan to fund key sections of the Sokoto–Badagry Super Highway project. The loan, arranged through a syndicate led by Deutsche Bank, will finance Sections I, Phase IA and IB, covering approximately 120 kilometres of the larger highway. Tinubu stated the borrowing complies with Sections 16 and 21 of the Debt Management Office Act.
The president described the highway as central to his administration's Renewed Hope Agenda, aiming to create a major North–South transport corridor. The full project spans about 1,000 kilometres of dual carriageway, linking Kebbi, Niger, Kwara, Oyo, Ogun and Lagos States. It is expected to improve connectivity, reduce travel time and logistics costs, and enhance trade and food supply chains.
Financing includes a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, part of the Islamic Development Bank. Federal government counterpart funding is estimated at N265.5 billion, with additional provisions for land acquisition, compensation and ancillary infrastructure. The loan has a nine-year repayment period, including up to three years of grace, at an interest rate of CME SOFR plus 5.3 per cent. The Federal Executive Council has approved the arrangement. Senate President Godswill Akpabio has referred the request to the Senate Committee on Local and Foreign Debts, ordering a report within one week.
President Tinubu is seeking Senate approval for a $516.3 million loan to build just 120 kilometres of a 1,000-kilometre highway, while asking Nigerians to bear rising fuel and transport costs. The federal government has already committed N265.5 billion in domestic funding, yet travel between Lagos and Oyo remains slow and dangerous. If 12% of the road requires such massive borrowing, the full project's cost could strain public finances for years. The Senate must clarify how this phase delivers measurable relief before approving the debt.
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