Tinubu Seeks Senate Approval For $516m Loan To Fund Sokoto–Badagry Highway

President Bola Tinubu has asked the Senate to approve a $516.3 million foreign loan to fund part of the Sokoto–Badagry highway project.

The request was read during Thursday’s plenary by Senate President Godswill Akpabio.

Tinubu explained that the approval is needed under the Debt Management Office Act of 2011 so the Federal Government can move ahead with funding key sections of the project.

According to him, the loan is expected to be arranged through Deutsche Bank.

The president noted that the highway is a major project under his Renewed Hope Agenda.

It is aimed at improving road connections across the country, cutting travel time, and making it easier to move goods between important economic areas.

The road, which will stretch about 1,000 kilometres, is expected to connect Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, running from Illela to Badagry.

Tinubu also stated that the loan will be supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).

The Federal Government also plans to contribute over N265 billion to cover land acquisition, compensation, and other related costs.

Tinubu added that the loan will run for nine years, with a three-year grace period, and will attract interest based on the SOFR rate plus 5.3 percent annually.

The Federal Executive Council has already given approval for the financing plan.

After the request was presented, Akpabio referred it to the Senate Committee on Local and Foreign Debts, asking the committee to review it and report back within a week.

Akpabio supported the plan, saying borrowing for infrastructure projects like roads is necessary to improve safety and strengthen national unity.

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