The Nigerian Senate has approved a $516 million syndicated loan request by President Bola Tinubu for 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 incorporated into the Federal Government’s borrowing plan.
According to the report, the loan carries a nine-year tenor with a grace period of up to three years and is backed by a partial guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
Lawmakers described the project as strategically significant, noting its potential to link three geopolitical zones and reduce travel time between northern and southern Nigeria.
Senator Tahir Monguno said the highway would also improve economic integration and boost movement of goods and services.
Senate President Godswill Akpabio explained that an earlier financing arrangement, approved by the Senate, had stalled due to geopolitical tensions affecting access to funds from an Abu Dhabi-based source, necessitating alternative financing options.
Beyond transportation, lawmakers said the Sokoto–Badagry Super Highway is expected to enhance agricultural productivity by improving market access, supporting dam infrastructure, and strengthening value chains.
President Bola Tinubu had written to the Senate on April 23 requesting approval for the syndicated loan under Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011.
He described the project as a flagship initiative under the Renewed Hope Agenda aimed at improving national connectivity and economic activity.
The Senate’s resolution is expected to be transmitted to the President for final action.
