The request was conveyed in a letter read during plenary by Senate President Godswill Akpabio, outlining plans to finance key sections of the proposed 1,000-kilometre Sokoto–Badagry Superhighway.
According to the president, the Sokoto–Badagry highway will serve as a strategic corridor linking the Northwest and Southwest regions, stretching from Illela in Sokoto State through Kebbi, Niger, Kwara, Oyo, and Ogun States before terminating in Badagry, Lagos.
The $516m loan will specifically fund Sections 1, Phase 1a and 1b, covering approximately 120 kilometres of the expansive project. The financing arrangement is structured as a syndicated loan through Deutsche Bank, supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit. In addition, the Federal Government has committed ₦265.54 billion as counterpart funding to cover land acquisition, compensation, and related infrastructure requirements. Details of the loan indicate a tenure of nine years, including a three-year grace period, with interest pegged at CME SOFR plus 5.3 percent annually.
The president noted that the Federal Executive Council had already approved the funding structure and urged lawmakers to incorporate it into the national borrowing plan. The Sokoto–Badagry highway is expected to deliver far-reaching economic benefits, including improved road safety, reduced transportation costs, and enhanced trade across regions.
By linking agricultural production zones in the North to major markets and ports in the South, the project is also projected to strengthen food security and stimulate economic growth. Beyond road construction, the highway design includes provisions for future rail lines and utility corridors, positioning it as a long-term infrastructure investment.
Government officials believe this integrated approach will support logistics efficiency and attract further investments into the transport sector. Following the presentation, the Senate referred the request to its Committee on Foreign and Local Debts for detailed review.
The committee is expected to submit its report within one week, after which lawmakers will decide on the approval of the loan.
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