The Federal Government has secured approval from the Senate for a $516 million syndicated loan request by President Bola Tinubu to finance the construction of Section 1, Phases 1A and 1B of the Sokoto–Badagry Super Highway.
The approval followed the consideration of a report during plenary presented by the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko. The committee recommended that the financing, arranged through Deutsche Bank AG, be integrated into the federal borrowing plan.
According to the committee’s report, the loan facility carries a partial guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), with a repayment tenor of nine years, including a grace period of up to three years.
During debate on the floor, lawmakers emphasised the strategic importance of the project, noting that the Sokoto–Badagry Super Highway is expected to improve national connectivity and ease movement across key economic corridors.
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Senator Tahir Monguno said the highway would link several geopolitical zones and significantly reduce travel time between northern and southern Nigeria, describing it as a major infrastructure intervention with wide economic benefits.
Senate President Godswill Akpabio explained that earlier financing arrangements for parts of the project had been affected by regional instability, making alternative funding sources necessary to sustain progress.
Lawmakers further argued that the project, which forms part of the Renewed Hope Agenda, is expected to boost agricultural productivity by improving access to markets, strengthening supply chains, and supporting broader economic activities along the corridor.
The proposed 1,000-kilometre highway will connect Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos States, stretching from Illela to Badagry.
President Tinubu had earlier written to the National Assembly requesting approval for the loan in line with relevant provisions of the Debt Management Office Act, stating that the project is designed to enhance connectivity, reduce travel time, and improve the movement of goods nationwide.
The financing arrangement includes a partial risk guarantee from ICIEC, while the Federal Government is expected to provide counterpart funding for land acquisition, compensation, and related infrastructure.
The Senate’s approval is expected to be transmitted to the President for final action.