By Musa Ibrahim, Abuja
The Senate on Wednesday approved a $516.3 million syndicated loan facility to fund the construction of the Sokoto–Badagry Super Highway, a major infrastructure project aimed at boosting national connectivity and economic growth.
The approval followed the consideration of a report by the Senate Committee on Local and Foreign Debts, chaired by Aliyu Wammakko, and presented by Adamu Aliero.
As part of the resolution, the upper chamber directed the Federal Ministry of Finance, the Debt Management Office, and the Ministry of Works to submit quarterly progress reports, while also mandating the submission of the full financing agreement within 30 days.
Lawmakers stressed the need for transparency, competitive procurement processes and periodic project evaluation to ensure value for money and timely delivery.
The loan request was initially transmitted to the Senate by President Bola Tinubu in a letter addressed to the President of the Senate, Godswill Akpabio. The facility, structured as a syndicated loan, is to be arranged by Deutsche Bank AG, with partial risk guarantee support from the Islamic Corporation for the Insurance of Investment and Export Credit.
According to the President, the Federal Government will provide counterpart funding of ₦265.54 billion to cover land acquisition, compensation, and related infrastructure components.
Presenting the committee’s findings, Aliero explained that the loan would finance Section One, Phase One (A and B1) of the project, covering approximately 120 kilometres of the planned 1,000-kilometre highway stretching from Sokoto to Badagry.
He described the highway as a strategic corridor designed to link Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos States, enhancing trade flows, improving transport efficiency and strengthening national integration.
“The project will reduce travel time, cut logistics costs and improve access between agricultural production zones and markets, while strengthening supply chains across critical sectors,” he said.
Aliero added that the facility carries a tenor of nine years, including a grace period of up to three years, with interest benchmarked at CME SOFR plus 5.35 per cent annually. He acknowledged concerns over rising external debt but noted that the borrowing is tied to long-term infrastructure expected to yield significant economic returns.
During debate, several lawmakers backed the proposal, describing it as a catalyst for growth across geopolitical zones.
Senator Mohammed Monguno said the project would unlock agricultural and transport value chains while helping to address unemployment and insecurity along the corridor.
Deputy Senate President, Jibrin Barau, emphasised its role in fostering national unity by improving connectivity between the northern and southern regions.
Also contributing, Senator Adetokunbo Abiru noted that earlier loan approvals had faced disbursement challenges due to global financial constraints, adding that the current structure offers a more viable funding alternative for ongoing projects.
Following deliberations, Akpabio put the recommendation to a voice vote, which received overwhelming support.
The Senate subsequently approved the $516.3 million facility for Phase One, Section One (A and B1) of the Sokoto–Badagry Super Highway, while mandating strict oversight by relevant committees to ensure accountability in implementation.
© 2026, Standard Focus. All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express written permission from STANDARD FOCUS.