The Senate has approved a $516 million syndicated loan requested by President Bola Tinubu to finance Section 1, Phases 1A and 1B of the Sokoto–Badagry Super Highway.
The approval followed consideration of a report presented during plenary by the Senate Committee on Local and Foreign Debts, chaired by Aliyu Wamakko.
The committee recommended that the loan facility, arranged through Deutsche Bank AG, be incorporated into the Federal Government’s borrowing plan.
According to the report, the loan carries a tenure of nine years, including a grace period of up to three years, and is supported by a partial guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
During deliberations, lawmakers emphasised the strategic importance of the highway project.
Tahir Monguno noted that the road is expected to link three geopolitical zones and significantly reduce travel time between northern and southern Nigeria.
The Senate President, Godswill Akpabio, explained that an earlier $5 million loan request approved by the Senate had stalled due to escalating conflict in Abu Dhabi, preventing the Federal Government from accessing the funds.
He added that sourcing alternative financing would help accelerate development efforts.
Beyond transport benefits, lawmakers stated that the Sokoto–Badagry Super Highway is expected to enhance agricultural productivity by improving access to markets, supporting dam infrastructure, and strengthening the agricultural value chain.
The Senate’s approval is to be transmitted to the President for final action.
Earlier, President Tinubu had formally written to the Senate on 23 April, seeking approval in line with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011.
He described the superhighway as a flagship project under his Renewed Hope Agenda, aimed at improving connectivity, reducing travel time, and facilitating the movement of goods across key economic corridors.
The proposed 1,000-kilometre road will link Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, connecting Illela to Badagry.
The President added that the Federal Government will provide counterpart funding of over ₦265 billion for land acquisition, compensation, and related infrastructure, while the loan will attract an interest rate based on the Chicago Mercantile Exchange SOFR plus 5.3 per cent per annum.
The House of Representatives had earlier approved the loan request.