Nigeria’s Senate is set to deliberate on a fresh external borrowing request by President Bola Ahmed Tinubu, who is seeking approval for a $516.33 million loan to fund part of the ambitious Sokoto–Badagry Superhighway.
The proposal, presented during plenary by Senate President Godswill Akpabio, places lawmakers at the center of a major decision on infrastructure financing and public debt.
At the heart of the request is a plan to secure funds from Deutsche Bank AG to construct about 120 kilometers of the highway’s first phase. The project, which spans roughly 1,000 kilometers, is expected to link northern and southern economic zones, running from Sokoto to Lagos.
“This financing is critical to delivering priority sections of the superhighway and unlocking its economic potential,” the President stated in his communication to the Senate.
The loan will be backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, while the Federal Government plans to inject N265.54 billion as counterpart funding for land compensation and related costs.
With a nine-year repayment period, including a three-year grace window, and interest tied to CME SOFR plus 5.3 percent, the proposal adds to ongoing discussions about Nigeria’s borrowing strategy and fiscal sustainability.
“We must carefully evaluate the long-term implications of this facility on our debt profile Infrastructure is vital, but sustainability cannot be overlooked,”a senator said during preliminary discussions.
“This project has the potential to transform interstate commerce and reduce logistics costs significantly,” another lawmaker noted, expressing cautious optimism.
If approved, the highway is expected to improve the movement of goods and people across multiple states, potentially lowering transport costs and boosting trade. It is also designed to accommodate future rail lines and utility corridors, signaling a broader vision for integrated infrastructure development.
“Beyond roads, this is about building an economic corridor that can stimulate investment across regions,” a government official said.
“Borrowing for infrastructure can be justified, but only if execution is efficient and returns are measurable,“Otherwise, it adds pressure to an already stretched fiscal position,” an Abuja-based economist said.
The Senate’s decision will determine how quickly the project moves forward, as the government pushes to address longstanding gaps in national connectivity.