President Bola Tinubu has formally approached the Senate for approval to secure a $516.3 million foreign syndicated loan to fund key phases of the Sokoto–Badagry highway project, a major infrastructure initiative aimed at boosting connectivity across Nigeria.
In a letter addressed to lawmakers and read during plenary on Thursday by Senate President Godswill Akpabio, the President sought legislative backing in accordance with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011. The request is a prerequisite for the Federal Government to proceed with external borrowing under existing legal frameworks.
According to the communication, the proposed loan will finance Sections 1, Phase 1A and 1B of the ambitious highway project, which is expected to link the northwestern city of Sokoto to Badagry in Lagos State, enhancing trade corridors and regional integration.
The financing arrangement is to be facilitated by Deutsche Bank AG, acting as the lead arranger for the syndicated facility. The government maintains that the project is critical to economic development, with anticipated benefits including improved transportation efficiency, job creation, and stimulation of commerce along the corridor.
The Senate is expected to deliberate on the request in the coming days, as lawmakers weigh the fiscal implications and strategic importance of the proposed borrowing. Approval would pave the way for the commencement of the specified phases of the highway project.