The Senate has approved a $516 million syndicated loan request by President Bola Tinubu to finance the construction of Section 1, Phases 1A and 1B of the Sokoto–Badagry Super Highway project.
The approval followed the consideration of a report presented during plenary by the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko.
The committee recommended that the facility, arranged through Deutsche Bank AG, be included in the Federal Government’s external borrowing plan.
According to the report, the loan is backed by a partial guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and carries a nine-year tenor, including a grace period of up to three years.
During debate on the proposal, lawmakers stressed the strategic importance of the project, describing it as a major infrastructure initiative expected to enhance national integration and economic activity.
The proposed highway is designed to link key parts of the country, connecting the northern and southern regions while significantly reducing travel time and improving road connectivity across multiple geopolitical zones.
Senate President Godswill Akpabio noted that earlier funding arrangements for related infrastructure projects had encountered challenges due to external factors.
He explained that a previously approved borrowing plan through Abu Dhabi had stalled as a result of geopolitical tensions, which prevented Nigeria from accessing the facility.
Akpabio said the approval of alternative financing was necessary to ensure continuity in ongoing infrastructure development across the country.
Lawmakers further argued that the Sokoto–Badagry Super Highway would not only improve transportation but also stimulate agricultural production by enhancing access to markets, supporting irrigation systems, and strengthening the agricultural value chain.
The Senate ultimately approved the loan request, clearing the way for the Federal Government to proceed with funding arrangements for the project.
The House of Representatives had earlier given its approval.
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