Tinubu seeks $516m loan for Lagos-Sokoto superhighway

President Bola Ahmed Tinubu on Thursday sought Senate approval for a $516,333,007 million loan from a Deutsche bank to fund the construction of the Sokoto-Badagry superhighway. In a letter addressed to Senate President Godswill Akpabio and read during plenary, the President stated that the 1,000km flagship project is designed to link Nigeria’s Northwest to the […]

President Bola Ahmed Tinubu on Thursday sought Senate approval for a $516,333,007 million loan from a Deutsche bank to fund the construction of the Sokoto-Badagry superhighway.

In a letter addressed to Senate President Godswill Akpabio and read during plenary, the President stated that the 1,000km flagship project is designed to link Nigeria’s Northwest to the Southwest.

The highway, he said, would run from Illela, Sokoto State, through Kebbi, Niger, Kwara, Oyo, and Ogun, terminating in Badagry, Lagos State.

According to the letter, the loan will cover Sections 1, Phase 1a, and 1b, spanning 120km of the total 1,000km corridor.

The President said the proposed financing arrangement comprises a syndicated loan to be secured through Deutsche Bank AG, supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the insurance arm of the Islamic Development Bank.

He said the federal government would provide counterpart funding in the sum of N265,542,689,569, covering land acquisition, compensation, and ancillary infrastructure.

The loan has a tenure of nine years, including a grace period of up to three years, with an interest rate not exceeding the Chicago Mercantile Exchange (CME) SOFR plus 5.3 per cent per annum.

The President noted that the Federal Executive Council has already approved the financing arrangement and requested the Senate to include the loan in the national borrowing plan.

The letter highlights that the superhighway will improve North-South connectivity, enhance safety, and reduce logistics costs.

The project is also expected to strengthen trade, food security, and national cohesion by linking production zones to markets and ports, as well as reserve the central median for future rail integration and utility corridors

Senate President Godswill Akpabio, who presided over the plenary, referred the request to the Committee on Foreign and Local Debts. The committee is expected to report back within one week.

Speaking on the project, Senator Mohammed Adamu Aliero (Kebbi Central) commended the initiative, noting that the project has been in the making for 55 years.

“I have inspected the project, and I have seen the progress made. I am highly impressed,” he said.

Aliero confirmed that ongoing work features both concrete and asphalt roads fitted with solar streetlights.

He estimated that, upon completion, travel time from Sokoto to Lagos would drop by more than 70%—reducing a 13-hour journey to approximately six hours.

 

Expert faults loan request

The Sokoto-Badagry Superhighway, like the Lagos-Coastal road in Lagos, is being handled by Hitech Construction company owned by the Chagoury Group.

The firm is owned by popular businessman and friend of the President, Gilbert Chagoury.

There has been controversy over the award of the two projects to the firm without going through the procurement process.

The new loan, according to analysts and observers, would add to Nigeria’s debt profile of N152 trillion.

Professor of Economics, Ndubisi Nwokoma, in a chat with Daily Trust, described the federal government’s decision as “fiscal rascality.”

According to him, projects such as the Sokoto–Badagry Superhighway and the Lagos-Calabar Coastal Highway are unlikely to deliver meaningful impact, arguing that the government should prioritise rehabilitating existing roads.

“I recently travelled to the East, and the roads are in terrible condition. Why not focus on maintaining them? Even if we must borrow, Nigerians should see tangible improvements in major expressways. If that happens, people will not complain as much,” he said.

He described some of the new projects as “white elephants,” insisting that functional infrastructure should take precedence over new constructions.

“Why not fix what we have before embarking on new roads? The Lagos-Calabar Coastal Road, for instance, is essentially a Lagos project. People are being misled to believe it is coastal. When will it even reach Calabar—after 100 years? It appears more like a route to link Eko Atlantic. There was no transparent tendering process. This points to fiscal recklessness,” he added.

Nwokoma also raised concerns over rising public debt and questioned the impact of subsidy removal, noting that increased allocations to states have not translated into visible development in many areas.

“We are borrowing excessively, yet the benefits are not evident. Beyond a few states, there is little to show. The scale of borrowing under Bola Ahmed Tinubu within three years is alarming,” he said.

 

Atiku queries loan terms, procurement process

Former vice president Atiku Abubakar also expressed concern over the loan request by Tinubu.

In a statement by his media aide, Phrank Shaibu, Atiku noted that infrastructure development—particularly one that seeks to connect the Northwest to the Southwest—is both necessary and desirable.

“Indeed, no region of Nigeria should be left behind in the march toward national integration and economic expansion. However, noble intentions cannot excuse reckless fiscal choices.

“At a time when Nigeria is already groaning under the weight of unsustainable debt, the resort to yet another foreign loan—without transparent terms, clear cost-benefit analysis, and a credible repayment framework—raises profound questions about prudence and accountability,” he said.

He emphasised that this is not a regional issue, nor should it be framed as one.

“What Nigerians expect is not just ambitious projects, but responsible financing. Development must not become a euphemism for deepening debt traps that generations yet unborn will be forced to repay,” he added.

The former Vice President further noted that while strategic infrastructure can unlock economic corridors, it must be pursued within the bounds of fiscal discipline, prioritisation, and openness.

Atiku raised serious concerns over reports that the project was awarded to Hitech Construction Company Limited without a transparent and competitive bidding process.

He described this as a dangerous continuation of the pattern earlier observed in the Lagos-Calabar Coastal Highway.

He questioned the logic and morality of borrowing public funds to finance projects allegedly handed to cronies without due process.

He insisted that the Sokoto–Badagry project must not be reduced to another exercise in favouritism or insider contracting.

He called on the National Assembly to subject the loan request to the highest level of scrutiny, ensuring that the terms are in the best interest of the Nigerian people and that the project delivers measurable economic value.

 

Tinubu mortgaging Nigeria’s future – ADC lawmakers

The African Democratic Congress (ADC) Legislators’ Forum faulted the President’s loan request for the Sokoto–Badagry Superhighway project.

In a statement, the forum’s chairman, Uko Ndukwe Nkole, described the move as “alarming” and reflective of what he called a pattern of reckless borrowing with little regard for sustainability or future generations.

While acknowledging the importance of infrastructure, the lawmakers questioned the rationale behind the loan, noting that the government has not presented a clear and transparent repayment strategy.

They warned that Nigeria’s rising debt profile is already straining national revenue, with debt servicing consuming a significant portion of earnings.

“Rather than address this reality with discipline, the administration continues to deepen the country’s exposure to debt, raising concerns about long-term economic stability,” the statement said.

The forum also questioned the timing of the loan request as the country approaches another election cycle, urging caution over large-scale financial commitments.

It called on the National Assembly of Nigeria, particularly the Senate, to thoroughly scrutinise the proposal by demanding full disclosure of project costs, procurement processes, and repayment plans.

The lawmakers further urged the government to prioritise policies that promote economic growth, job creation, and improved revenue generation, stressing that borrowing should not replace fiscal discipline and accountability.