Tinubu Requests Senate Approval for $516M Loan

President Bola Ahmed Tinubu has sought the Senate's approval for a fresh loan of $516 million to support the Sokoto-Badagry superhighway project. This project, spanning approximately 1,000 kilometers, is designed to connect Nigeria's northwest and southwest regions, running from Ilela in Sokoto State to Badagry in Lagos State.

The loan will specifically fund sections 1, phase 1A and 1B, covering a total of 120 kilometers. Tinubu explained that the funding arrangement involves a syndicate loan backed by Deutsche Bank AG, with partial risk guarantees from the Islamic Corporation for the Insurance of Investment and Export Credit, while the federal government will provide a counterpart fund of 265.5 billion Naira for land acquisition and compensation related to the infrastructure.

The loan has a tenure of nine years, including a three-year grace period, with an interest rate pegged to the Chicago Mercantile Exchange SOFR plus 5.3 percent annually. The Federal Executive Council has already approved this arrangement, which is part of the national borrowing plan.

The project aims to improve connectivity, enhance safety, reduce logistics costs, and boost trade and food security across Nigeria.