Tinubu Seeks Senate Approval for $516.3 Million Deutsche Bank Loan for Sokoto–Badagry Highway

President Bola Ahmed Tinubu has formally requested the Senate's approval to secure a $516.3 million syndicated loan from Deutsche Bank AG to support the construction of the Sokoto–Badagry Super Highway, a flagship infrastructure project under his administration's Renewed Hope Agenda.

The request was conveyed in a letter read during plenary by Senate President Godswill Akpabio, asking lawmakers to approve the external borrowing in accordance with the Debt Management Office (Establishment) Act, 2011.

Loan to Finance Key Sections of Highway

According to the President, the proposed financing will cover Section 1, Phases 1A and 1B of the Sokoto–Badagry Super Highway. The project is designed to connect Illela in Sokoto State to Badagry in Lagos State, passing through several states to improve the movement of people and goods across Nigeria.

The loan is expected to have a nine-year tenure, including a grace period of up to three years, and is backed in part by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).

Senate Approval Required

The Senate Committee on Local and Foreign Debts reviewed the request before recommending its approval. Lawmakers subsequently backed the proposal and agreed that the facility should be incorporated into the Federal Government's borrowing plan.

Mixed Reactions

The borrowing request has generated debate among political leaders and economists.

Supporters argue that long-term infrastructure financing is necessary to improve transport links and stimulate economic growth, while critics have expressed concern about Nigeria's rising debt profile and the country's increasing reliance on external borrowing. Former Vice President Atiku Abubakar described the proposed loan as another example of unsustainable fiscal policy.

The Federal Government, however, maintains that the highway is a strategic national project that will boost trade, reduce travel time and strengthen economic integration across the country.