JUST IN: Senate Approves $516M Loan Sought by Tinubu

The Senate, on Wednesday, gave approval to a $516 million loan request from President Bola Tinubu.

The approval followed the consideration of a report during plenary, presented by the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko.

Naija News recalls that President Tinubu had requested the Senate’s approval for the loan to fund part of the Sokoto-Badagry Superhighway project.

The request was conveyed in a letter addressed to Senate President Godswill Akpabio and read during last Thursday’s plenary.

The President said the project is a 1,000-kilometre flagship highway designed to link Nigeria’s North-West to the South-West.

According to the proposal, the highway will run from Illela in Sokoto State through Kebbi, Niger, Kwara, Oyo, and Ogun, terminating in Badagry, Lagos State.

The loan will specifically fund Sections 1, Phase 1a and 1b, covering 120 kilometres of the total corridor.

Tinubu explained that the funding arrangement involves a syndicated loan from Deutsche Bank AG, backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit.

During deliberations, lawmakers highlighted the strategic importance of the highway project.

Senator Tahir Monguno noted that the road was expected to connect three of Nigeria’s geopolitical zones and significantly reduce travel time between the northern and southern parts of the country.

The Senate President, Godswill Akpabio, explained that an earlier $5 million request by the President, approved by the Senate, was to be assessed.

He noted that the borrowing arrangement through Abu Dhabi had stalled owing to escalating conflict in the region, preventing the Federal Government from drawing on the funds.

He added that securing alternative financing sources would accelerate ongoing development efforts.

Beyond transportation, lawmakers argued that the Sokoto–Badagry Super Highway project is expected to boost agricultural productivity by improving access to markets, supporting dam development, and strengthening the agricultural value chain.

The Senate’s approval is expected to be transmitted to the President today for final action.

Naija News reports that the House of Representatives had earlier approved the loan request.