The Senate has approved a $516,333,700 syndicated financing facility for the construction of the Sokoto–Badagry Super Highway Project.
The approval on Wednesday followed the presentation and consideration of the report of the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wammakko, APC, Sokoto North.
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.
The Senate stressed the need for transparency, competitive procurement, and periodic project evaluation to ensure value for money and timely delivery.
With the approval, the request now awaits transmission to the executive for final processing and implementation.
President Bola Tinubu had last week written the Senate, seeking approval to borrow fresh $516, 333,07 loan.
In a letter to the President of the Senate, Senator Godswill Akpabio, which was read last week Thursday during plenary, the syndicated loan will be secured through Deutsche Bank AG, supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the insurance arm of the Islamic Development Bank and it is aimed at financing the already approved borrowing plan for the Sokoto- Badagry 1,000 Super Higway.
According to the President, the Federal Government will provide counterpart funding in the sum of ₦265,542,689,569, covering land acquisition, compensation, and ancillary infrastructure.
The request was referred to the Senate Committee on Local and Foreign Debt on April 23 which subsequently presented its report recommending approval of the loan.
In his presentation of the report on behalf of Wammakko, Senator Adamu Aliero, APC, Kebbi Central, explained that the facility would 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.
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Aliero noted that the project was strategically designed to enhance national connectivity by linking Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos States, just as he described it as a major infrastructure initiative aimed at improving trade, transportation efficiency, and national integration.
According to him, 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, adding that 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 would 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.
In his remarks, Senator Mohammed Monguno, APC-Borno North, argued that the project would unlock agricultural and transport value chains while reducing unemployment and insecurity along the corridor.
On his part, the Deputy President of the Senate, Senator Jibrin Barau, APC, Kano North emphasised its national integration benefits, noting that it would connect the northern and southern parts of the country more efficiently.
In his contributions, Senator Adetokunbo Abiru, APC, 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.
In his remarks, the President of the Senate, Senator Godswill Akpabio, 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.
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