Tinubu Requests Senate Approval for $516 Million Deutsche Bank Loan for Sokoto–Badagry Superhighway
President Bola Tinubu has asked the Senate to approve a $516 million loan from Deutsche Bank to fund key phases of the Sokoto–Badagry Superhighway, a major infrastructure project aimed at boosting trade and national connectivity.
ABUJA
President Bola Ahmed Tinubu has asked the Senate to approve a $516.3 million external loan facility to finance critical sections of the proposed Sokoto–Badagry Superhighway, one of the flagship road infrastructure projects of the current administration.
The request was conveyed in a letter to Senate President Godswill Akpabio, which was read during plenary on Thursday, marking the latest step in the Federal Government’s efforts to secure funding for the strategic road corridor expected to link the far Northwest to the Southwest.
According to the President, the loan, to be sourced from Deutsche Bank AG, is earmarked for Sections 1, Phase 1a and 1b of the project, covering approximately 120 kilometres of the proposed 1,000-kilometre highway.
A Strategic Road Corridor
The proposed Sokoto–Badagry Superhighway is designed to connect Illela in Sokoto State to Badagry in Lagos State, traversing Kebbi, Niger, Kwara, Oyo and Ogun states.
The Tinubu administration says the project is expected to significantly improve road connectivity across key commercial and agricultural corridors while reducing the cost and time of moving goods and people across the country.
In the President’s communication to lawmakers, the highway was described as a transformative infrastructure project that would enhance national integration by linking major production hubs in northern Nigeria to markets and export gateways in the south.
Officials say the route is expected to improve access for farmers, manufacturers and transport operators while opening up new economic opportunities for communities along the corridor.
Financing Structure and Federal Commitment
The President explained that the proposed financing forms part of a broader syndicated loan arrangement, backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), an affiliate of the Islamic Development Bank.
The Federal Government is also expected to commit ₦265.54 billion in counterpart funding, mainly to cover land acquisition, compensation payments and other associated infrastructure costs.
According to the proposal, the loan facility carries a nine-year tenure, including a grace period of up to three years, with interest pegged at the Chicago Mercantile Exchange SOFR plus 5.3 per cent annually.
The financing plan, Tinubu noted, has already received approval from the Federal Executive Council (FEC) and now requires legislative endorsement for inclusion in the national borrowing plan.
Expected Economic Impact
President Tinubu said the superhighway is expected to deliver far-reaching economic benefits by improving mobility, lowering transportation costs and stimulating trade across regions.
He noted that the road would improve road safety, reduce logistics bottlenecks, and strengthen food security by connecting agricultural belts to urban markets and export points.
The administration also disclosed that the design of the corridor includes provisions for future rail lines and utility infrastructure, making the project a long-term economic asset intended to support industrial expansion and regional development.
Infrastructure experts say the road could become one of the most significant east-west transport links in the country if completed as planned.
Senate Begins Review
Following the presentation of the President’s request, Senate President Godswill Akpabio referred the proposal to the Senate Committee on Foreign and Local Debts for detailed legislative scrutiny.
The committee is expected to submit its report within one week, after which lawmakers may decide on whether to approve the borrowing request.
The move signals the beginning of parliamentary consideration of one of the administration’s largest infrastructure financing requests in recent months.
Lawmakers Back Proposal
Speaking in support of the request, Senator Mohammed Adamu Aliero described the superhighway as a long-awaited development initiative capable of transforming transport and trade across multiple regions.
According to him, the project has been under consideration for decades and now presents an opportunity to deliver lasting economic value.
Aliero said ongoing works on the route are expected to combine concrete and asphalt pavement, alongside solar-powered street lighting, to improve durability and safety.
He added that the project could reduce travel time between Sokoto and Lagos by more than 70 per cent, bringing the journey down from roughly 13 hours to about six hours.
The senator urged his colleagues to give the proposal speedy consideration once the committee submits its findings.
Infrastructure Push Continues
The latest borrowing request underscores the Tinubu administration’s continued reliance on external financing to drive major infrastructure projects under its broader economic reform agenda.
While government officials argue that investments in roads, transport and logistics are essential to unlocking economic growth, concerns remain over the pace of debt accumulation and the sustainability of large-scale borrowing.
Nevertheless, supporters of the project say the proposed highway could become a critical national asset, linking major economic zones and strengthening the movement of goods from inland production centres to coastal ports.
As the Senate reviews the request, the spotlight will be on whether lawmakers approve the financing and how quickly the government can move from planning to implementation.