The Senate has approved the request of President Bola Tinubu for a $516.3 billion syndicated loan facility to finance the construction of the Sokoto–Badagry Super Highway Project, following the consideration and adoption of a committee report during plenary.
The approval followed a report dated Monday, April 20, 2026, from President Bola Tinubu requesting legislative backing for external borrowing in line with the provisions of the Debt Management Office Establishment Act 2011 and the Fiscal Responsibility Act 2007.
The request was referred to the Senate Committee on Local and Foreign Debt on April 23, 2026, which subsequently presented its report recommending approval of the loan.
Presenting the report on behalf of the committee chairman, Senator Aliyu Wamakko (Sokoto North), Senator Adamu Aliero (Kebbi Central) explained that the facility will finance Section One, Phase One (A and B1) of the highway project, covering about 120 kilometres as part of a broader corridor expected to span approximately 1,000 kilometres from Sokoto to Badagry.
He noted that the project is strategically designed to enhance national connectivity by linking Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos States, describing it as a major infrastructure initiative aimed at improving trade, transportation efficiency, and national integration.
He further stated that the project would reduce travel time, lower logistics costs, improve access between agricultural zones and markets, and strengthen supply chains across key sectors, including agriculture and manufacturing.
According to him, the financing arrangement is structured as a syndicated facility provided by Deutsche Bank, with partial credit enhancement support from the Islamic Corporation for the Insurance of Investment and Export Credit.
The facility has a tenor of nine years, including a grace period of up to three years, with an interest rate benchmarked at CME SOFR plus 5.35 per cent per annum.
He also observed that although the loan will add to Nigeria’s external debt stock, it is tied to long-term capital development projects expected to generate significant economic returns.
Following the presentation of the report, senators debated the request, with many describing the project as a strategic infrastructure link capable of boosting economic growth across geopolitical zones.
Senator Tahir Monguno (Borno North) argued that the project would unlock agricultural and transport value chains while reducing unemployment and insecurity along the corridor.
The Deputy Senate President, Jibrin Barau, emphasized its national integration benefits, noting that it would connect the northern and southern parts of the country more efficiently.
Senator Adetokunbo Abiru (Lagos East) referenced previous loan approvals that were yet to be fully disbursed due to global financial constraints, arguing that the current arrangement provides an alternative funding structure for ongoing projects.
Ruling on the motion, the Senate President put the recommendation to a voice vote, and it was overwhelmingly adopted.
The Senate thereafter approved the $516.3 million syndicated loan for the Sokoto–Badagry Super Highway Project, Phase One, Section One (A and B1), and mandated strict oversight by relevant committees.
The upper chamber also directed quarterly reporting by the Federal Ministry of Finance, the Debt Management Office, and the Ministry of Works, as well as submission of the financing agreement within 30 days.
Lawmakers further stressed the need for transparency, competitive procurement, and periodic project evaluation to ensure value for money and timely delivery.
