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 House of Representatives approved the loan on Tuesday.

The approval followed the consideration of a report presented at plenary 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 tenor of nine years, including 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.

During deliberations, lawmakers underscored the strategic importance of the highway project. Senator Tahir Monguno said the road would connect three of Nigeria’s geopolitical zones and significantly reduce travel time between the northern and southern parts of the country.

The Senate President, Mr. Godswill Akpabio, explained that an earlier $5 million loan request by the President, already approved by the Senate, was yet to be accessed. He noted that the borrowing arrangement through Abu Dhabi had stalled due to escalating conflict in the region, which prevented the Federal Government from drawing down the funds. Akpabio added that securing alternative financing would accelerate ongoing development efforts.

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

The Senate’s approval is expected to be transmitted to the President today for final action.

President Tinubu had, on April 23, formally written to the Senate seeking approval for the foreign syndicated loan to support the construction of the highway.

In his request, he sought a resolution in line with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011, to enable the Federal Government to secure financing for Section 1, Phases 1A and 1B, of the project.

Tinubu described the superhighway as a flagship initiative under his administration’s Renewed Hope Agenda, aimed at enhancing national connectivity, reducing travel time, and improving the movement of goods along key economic corridors.

The proposed 1,000-kilometre road will link Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, connecting Illela to Badagry.

He added that the financing arrangement would be supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, while the Federal Government would provide counterpart funding of over ₦265 billion for land acquisition, compensation, and related infrastructure.

According to the President, the loan is structured over nine years, including a three-year grace period, with an interest rate pegged to the Chicago Mercantile Exchange Secured Overnight Financing Rate (SOFR) plus 5.3 per cent per annum.