President Bola Tinubu has formally requested the Senate to approve a fresh external loan of $516,333,070 from Deutsche Bank. The funds are earmarked for the construction of sections of the Sokoto–Badagry Super Highway, a key infrastructure project under his Renewed Hope Agenda.
Loan Request Presented to Senate
In a letter read during plenary on Thursday, April 23, 2026, Tinubu urged lawmakers to expedite consideration of the request. He stated: “Specifically, approval is sought for the syndicated financing facility from Deutsche Bank in the total sum of US$516,333,007 for the execution of Sections 1, 1A, and 1B of the Sokoto–Badagry Superhighway Project.”
Project Details and Expected Benefits
The proposed 1,000-kilometre highway will connect Nigeria’s North-West to the South-West, passing through Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states. It stretches from Illela in Sokoto to Badagry in Lagos. According to Tinubu, the project is expected to enhance north–south connectivity, improve road safety, reduce logistics costs, cut travel time, facilitate trade, strengthen food security, and promote national integration. Lawmakers noted that travel time between Sokoto and Lagos could drop from 13 hours to six hours.
Financing Structure and Terms
The loan arrangement involves a syndicated facility backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit. The Federal Government will provide counterpart funding of ₦265.5 billion for land acquisition, compensation, and related infrastructure. The loan has a nine-year tenure with a three-year grace period, and an interest rate benchmarked at the Chicago Mercantile Exchange SOFR plus 5.3 percent per annum. Tinubu confirmed that the Federal Executive Council has already approved the financing plan.
Senate Response
Senate President Godswill Akpabio described the project as a “major economic game changer,” emphasizing that borrowing for critical infrastructure is justified when long-term benefits outweigh costs. He referred the request to the Committee on Local and Foreign Debts, directing it to report back within one week. Akpabio urged the committee to expedite its review to enable timely consideration of the loan request.
Additional Context
This development follows the federal government’s recent securing of a $700 million loan from the World Bank, the third facility approved under Tinubu’s administration. The first was a $750 million loan on June 9, 2023, to boost Nigeria’s power sector, and the second was a $500 million loan on June 22, 2023, to drive women’s empowerment.
