Just In: President Tinubu Asks Senate to Approve Fresh $516m Loan
- President Bola Tinubu has asked the Senate to approve a fresh $516m loan from Deutsche Bank to fund sections of the Sokoto–Badagry Super Highway
- The 1,000-kilometre project is designed to connect Nigeria’s North-West and South-West, cutting travel time between Sokoto and Lagos almost in half
- Lawmakers say the highway could be a major boost to trade, food security, and national integration
President Bola Tinubu has asked the Senate to approve a new external loan of $516,333,070.
The loan, to be sourced from Deutsche Bank, is intended to finance sections of the Sokoto–Badagry Super Highway, a flagship project under his administration’s Renewed Hope Agenda.
Source: Facebook
In a letter addressed to Senate President Godswill Akpabio and read during plenary on Thursday, April 23, 2026, Tinubu urged lawmakers to give the request urgent consideration. He wrote:
“Specifically, approval is sought for the syndicated financing facility from Deutsche Bank in the total sum of US$516,333,007 for the execution of Sections 1, 1A, and 1B of the Sokoto–Badagry Superhighway Project."
Sokoto–Badagry super highway project
According to Vanguard, the proposed 1,000-kilometre carriageway will connect Nigeria’s North-West to the South-West corridor, running through Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states. The route stretches from Illela in Sokoto State to Badagry in Lagos State.
According to Tinubu, the project is expected to enhance north–south connectivity, improve road safety and network performance, reduce logistics costs and travel time, facilitate trade, strengthen food security, and promote national integration by linking production zones to markets and ports. Lawmakers noted that the highway could cut travel time between Sokoto and Lagos from 13 hours to six hours.
Financing structure and terms
The loan arrangement includes a syndicated loan backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit. The Federal Government will provide counterpart funding of ₦265.5bn for land acquisition, compensation, and related infrastructure.
The loan will run for nine years, with a three-year grace period, and an interest rate benchmarked at the Chicago Mercantile Exchange SOFR plus 5.3 per cent per annum. Tinubu confirmed that the Federal Executive Council has already approved the financing plan.
Speaking with Legit.ng, AbdulRasheed Hussain, a policy analyst based in Nigeria, he analysed Tinubu’s request for a fresh $516m loan:
“Tinubu’s request for yet another foreign loan highlights a troubling pattern, we’re seeing infrastructure ambitions outpace Nigeria’s debt sustainability. While the Sokoto–Badagry Super Highway could indeed boost trade and integration, piling on external loans with high interest rates risks deepening the country’s fiscal burden. For you, the real concern is whether these projects will deliver enough tangible economic returns to justify the mounting debt, or if they’ll simply add to Nigeria’s cycle of borrowing without structural reform.”
Senate action
Senate President Akpabio described the project as a “major economic game changer,” stressing that borrowing for critical infrastructure is justified when long-term benefits outweigh costs. He referred the request to the Committee on Local and Foreign Debts, directing it to report back within one week.
Akpabio also urged the committee to expedite its review to enable timely consideration of the loan request.
Source: Facebook
Tinubu secures another $700m loan from World Bank
Legit.ng earlier reported that the federal government has secured a fresh $700m loan from the World Bank, the third facility approved under the administration of Bola Tinubu.
The first was approved on June 9, 2023, with a loan of $750m to boost Nigeria’s power sector. The second was a loan of $500m to help Nigeria drive women’s empowerment, and was approved on June 22, 2023, Punch reports.
Source: Legit.ng
