Senate Approves $516 Million Syndicated Loan for Sokoto‑Badagry Super Highway

The Sokoto‑Badagry Super Highway is planned to stretch about 1,000 kilometres, linking Sokoto in the northwest to Badagry in the southwest and passing through Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos States. The project aims to cut travel time, lower logistics costs, and improve market access for agricultural and manufacturing goods across the country. The first phase covers roughly 120 kilometres of Section One, Phase One (A and B1).

The Senate’s approval authorizes a $516,333,700 syndicated loan arranged by Deutsche Bank AG (ticker: DB) with a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC). The loan has a nine‑year tenor, a three‑year grace period, and an interest rate of CME SOFR plus 5.35 % per annum. The Federal Government will provide counterpart funding of ₦265.54 billion for land acquisition, compensation, and ancillary infrastructure.

The financing adds to Nigeria’s external debt stock but is tied to a long‑term capital project expected to generate economic returns through improved trade and transport efficiency. The Senate mandated quarterly reporting by the Federal Ministry of Finance, the Debt Management Office, and the Ministry of Works, and required the financing agreement to be submitted within 30 days.