Senate approves Tinubu’s $516m loan request for infrastructure

Adebayo Obajemu

The Senate has approved a $516 million syndicated loan request by President Bola Tinubu to fund 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 comes with a partial guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and carries a tenor of nine years, including a grace period of up to three years.

During deliberations, lawmakers highlighted the strategic importance of the highway project.

The road was expected to connect three of Nigeria’s geopolitical zones and significantly reduce travel time between the northern and southern parts of the country.

The Senate President, Godswill Akpabio, explained that an earlier $5 million request by the President, approved by the Senate, was to be assessed.

He noted that the borrowing arrangement through Abu Dhabi had stalled owing to escalating conflict in the region, preventing the Federal Government from drawing on the funds.

He added that securing alternative financing sources would accelerate ongoing development efforts.

Beyond transportation, lawmakers argued that the Sokoto–Badagry Super Highway project is expected to boost agricultural productivity by improving access to markets, supporting dam development, and strengthening the agricultural value chain.