Juliet Ezeh
The Nigerian Senate on Wednesday approved a $516 million external loan request by President Bola Ahmed Tinubu to finance the first phase of the Sokoto–Badagry Super Highway, a flagship infrastructure project expected to reshape economic connectivity across the country.
The approval, granted during plenary, followed the consideration of a report by the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko. Lawmakers endorsed the committee’s recommendation that the loan facility arranged through Deutsche Bank AG be included in the Federal Government’s borrowing plan.
According to the report presented by Senator Adamu Aliero, the loan will fund Section 1, Phases 1A and 1B of the ambitious highway project. The financing package carries a nine-year tenor, including a grace period of up to three years, and is partially guaranteed by the Islamic Corporation for the Insurance of Investment and Export Credit.
Debate on the floor of the Senate centered on the economic significance of the proposed highway, which is designed to link Nigeria’s North-West to the South-West, traversing multiple states and economic zones. Several senators described the project as critical to national integration and long-term growth.
Leading the argument in support of the loan, Senator Tahir Monguno said the Sokoto–Badagry Super Highway would unlock vast agricultural potential along its corridor. He noted that improved road infrastructure would enable farmers and producers to move goods more efficiently, reduce post-harvest losses, and stimulate rural economies.
“This is a deserving project,” Monguno said. “It will not only create jobs but also expand the country’s revenue base by opening up economic activities across regions.”
He added that the highway would connect three of Nigeria’s six geopolitical zones North West, North Central, and South West thereby strengthening trade linkages and fostering microeconomic development in communities situated along the route.
Also backing the loan request, Senator Adetokunbo Abiru emphasized the importance of improving transport connectivity between the northern and southern parts of the country. He argued that the project would significantly reduce travel time and logistics costs, making it easier for businesses to operate across regions.
Deputy Senate President Jibrin Barau described the loan as a strategic investment aligned with the administration’s broader economic agenda. He expressed confidence in Tinubu’s financial expertise, stating that the President’s background as an accountant and administrator positions him to make sound fiscal decisions.
“Mr. President means well for this country,” Barau said during deliberations. “This project will enhance economic activities and bring prosperity to millions of Nigerians.”
The Senate President, Godswill Akpabio, who presided over the session, commended the executive for seeking external financing to fund infrastructure development. He noted that such projects are essential to unlocking Nigeria’s economic potential and addressing longstanding deficits in transport infrastructure.
Akpabio also highlighted additional benefits tied to the highway project, including the planned construction of dams along the route. According to him, these dams could support irrigation systems, boost agricultural productivity, and contribute to food security.
“This is not just about building a road,” Akpabio said. “It is about creating a corridor of economic opportunities that will benefit generations to come.”
Despite the broad support, the approval comes at a time when Nigeria’s rising debt profile remains a subject of public concern. Analysts have repeatedly warned about the sustainability of external borrowing, especially in the face of fluctuating oil revenues and foreign exchange challenges.
However, lawmakers maintained that the economic returns from the Sokoto–Badagry Super Highway would justify the borrowing. They argued that strategic infrastructure investments are necessary to drive growth, attract private sector participation, and improve the overall business environment.
The Sokoto–Badagry Super Highway is one of several large-scale infrastructure projects proposed by the Tinubu administration as part of efforts to modernize Nigeria’s transport network. When completed, the highway is expected to serve as a major trade artery, linking agricultural hubs in the north to commercial centers and ports in the south.
Experts say the project could also enhance regional trade within West Africa by improving access to border areas and facilitating cross-border commerce.
With the Senate’s approval secured, the Federal Government is expected to proceed with the implementation of the project, beginning with the initial phases covered by the loan. Attention will now shift to execution, as stakeholders watch closely to see whether the project delivers on its promise of economic transformation.
For now, the National Assembly has signaled its readiness to back key infrastructure initiatives, reinforcing a policy direction that prioritizes development spending despite fiscal pressures.