President Bola Tinubu has formally requested the National Assembly’s approval for a $516.3 million external loan to finance key sections of the proposed Sokoto–Badagry Superhighway, a flagship infrastructure project under his administration’s Renewed Hope Agenda.
The request, conveyed in a letter to Senate President Godswill Akpabio and read during plenary, seeks legislative endorsement for a syndicated loan facility arranged through Deutsche Bank.
The funds are earmarked for Sections 1, 1A, and 1B of the nearly 1,000-kilometre highway designed to link Nigeria’s North-West and South-West regions.
According to the President, the project will traverse Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, stretching from Illela to Badagry.
He said it is intended to boost economic integration, enhance road safety, reduce travel time and logistics costs, and strengthen trade and food security by linking production hubs to markets and ports.
Tinubu explained that the financing structure includes support from the Islamic Corporation for the Insurance of Investment and Export Credit, which will provide a partial risk guarantee. The Federal Government is also expected to contribute about ₦265.5 billion as counterpart funding for land acquisition, compensation, and related infrastructure.
The loan is structured over nine years, including a three-year grace period, with interest tied to the Chicago Mercantile Exchange SOFR plus 5.3 percent. The Federal Executive Council has already approved the arrangement, with the President urging lawmakers to expedite consideration.
On the Senate floor, lawmakers highlighted the transformative potential of the highway, noting it could cut travel time between Sokoto and Lagos from about 13 hours to six. Senate President Akpabio described the initiative as an economic “game changer,” arguing that borrowing for critical infrastructure is justified when it delivers long-term value and productivity gains.
The Senate subsequently referred the request to its Committee on Local and Foreign Debts, directing it to report back within one week.
However, the proposal has drawn sharp criticism from former Vice President Atiku Abubakar, who cautioned against what he described as growing reliance on external borrowing without sufficient transparency.
In a statement, Atiku acknowledged the importance of infrastructure development but warned that “noble intentions cannot excuse reckless fiscal choices,” especially given Nigeria’s rising debt profile. He called for clear cost-benefit analysis, credible repayment plans, and full disclosure of loan terms.
The former vice president also raised concerns over the alleged lack of competitive bidding in the award of the project, warning against what he termed a pattern of opaque contracting. He urged the National Assembly to subject the loan request to rigorous scrutiny to ensure accountability and value for money.
While both supporters and critics agree on the strategic importance of the Sokoto–Badagry corridor, the debate now shifts to the legislature, where approval of the loan will hinge on balancing infrastructure ambitions with fiscal responsibility.
