President Bola Tinubu has asked the Senate to approve a $516.3 million external loan to fund part of the ambitious Sokoto–Badagry Super Highway, a flagship infrastructure project under his administration’s Renewed Hope Agenda. In a formal request, the President said the financing, arranged by Deutsche Bank, will cover key early sections of the project spanning about 120 kilometres of the planned 1,000-kilometre dual carriageway.
The highway is designed to link several states from Kebbi through Sokoto, Niger, Kwara, Oyo, Ogun, and terminating in Badagry, Lagos State. It is expected to improve north-south connectivity, reduce travel time from approximately 13 hours to six hours, lower transport costs for goods, and boost trade by easing the movement of products between farms, markets, and ports. The funding package includes support from an Islamic Development Bank affiliate and federal counterpart funding of ₦265.5 billion for land acquisition, compensation, and ancillary infrastructure.
The loan has a tenor of nine years, including a three-year grace period, with an interest rate not exceeding the Chicago Mercantile Exchange SOFR plus 5.3 per cent per annum. Senate President Godswill Akpabio has referred the request to the Committee on Foreign and Local Debts for review within one week. Senator Mohammed Adamu Aliero lauded the initiative, noting that the project has been in the making for 55 years and that upon completion, the central median will be reserved for future rail integration and utility corridors.
From an economic perspective, improved road infrastructure reduces logistics costs for businesses, enhances access to markets for agricultural producers, and supports industrialisation by facilitating the movement of raw materials and finished goods. However, the addition of $516 million to Nigeria’s external debt stock raises questions about fiscal sustainability, particularly given the country’s high debt service-to-revenue ratio. The government’s ability to ensure timely completion and transparent execution will determine whether the investment delivers the promised returns or adds to the nation’s growing debt burden without corresponding economic benefits.
