President Bola Tinubu has asked the Senate to approve a $516.3 million syndicated loan to finance sections of the Sokoto–Badagry Super Highway project.

The request, contained in a letter to the upper chamber, seeks approval to secure funding from Deutsche Bank for Sections I, Phase IA and IB of the project, covering about 120 kilometres. The President said the move complies with provisions of the Debt Management Office Act.

According to him, the Sokoto–Badagry Super Highway is a major infrastructure initiative under his administration’s Renewed Hope Agenda, designed to connect Nigeria’s North and South through an estimated 1,000-kilometre dual carriageway.

The proposed route is expected to pass through Kebbi, Niger, Kwara, Oyo, Ogun and Lagos States, improving transportation links across key economic zones.

Tinubu said the project would enhance connectivity, reduce travel time and logistics costs, and boost trade and food security by linking production centres with markets and ports. He added that it would also support future infrastructure expansion, including utilities and intermodal transport systems.

The financing plan includes a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, an arm of the Islamic Development Bank, alongside federal government counterpart funding estimated at N265.5 billion. Additional provisions have been made for land acquisition, compensation and related infrastructure.

The loan is structured with a nine-year tenure, including a grace period of up to three years, and carries an interest rate pegged at CME SOFR plus 5.3 per cent.

Tinubu noted that the Federal Executive Council had already approved the arrangement and urged lawmakers to incorporate it into the national borrowing plan.

The Senate President subsequently referred the request to the Committee on Local and Foreign Debts for review, directing it to report back within one week.