PRESIDENT Bola Tinubu has asked the Senate to approve a fresh external borrowing of $516.3 million to support the Sokoto–Badagry Superhighway project.
The fresh loan request was despite the oil windfall for the Nigerian government, with a budget benchmark of $64.85 per barrel, and Brent currently selling for $102.2 per barrel, according to data from oilprice.com.
The loan request was coming barely 48 hours after the sack of the former Minister of Finance, Wale Edun, who, sources said, was not in support of frequent borrowings of the Tinubu administration.
In a letter transmitted to the Senate, the president said the proposed facility sourced through a syndicated arrangement, led by Deutsche Bank, would finance Sections I, Phase IA and IB of the project, covering roughly 120 kilometres.
He explained that the request complied with Sections 16 and 21 of the Debt Management Office (DMO) Act governing public borrowing.
Tinubu described the highway as a cornerstone of his administration’s promise to establish a major North–South transport corridor.
The full project spans about 1,000 kilometres of dual carriageway, linking Kebbi, Niger, Kwara, Oyo, Ogun and Lagos states.
According to the president, the road is expected to significantly enhance connectivity across the country, improve safety, cut travel time and logistics costs, and boost trade and food supply chains by easing movement between production hubs, markets and seaports.
He added that the design also made room for future infrastructure expansion, including utility corridors and integration with other transport systems.
The financing plan includes a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit- an arm of the Islamic Development Bank, alongside federal government counterpart funding estimated at N265.5 billion. Additional provisions have been made for land acquisition, compensation and ancillary infrastructure.
Details of the loan also showed a nine-year repayment period, including a grace window of up to three years, with interest pegged at CME – Secure Overnight Financing Rate (SOFR) plus 5.3 per cent.
Tinubu noted that the Federal Executive Council had already endorsed the financing arrangement and urged lawmakers to incorporate it into the country’s borrowing plan.
Following its presentation, Senate President Godswill Akpabio referred the request to the Senate Committee on Local and Foreign Debts, directing the panel to report back within one week.
The frequent loan request has raised several questions about Tinubu’s appetite for borrowing.
Last month, the president requested that the National Assembly approve a N9 trillion increase to the 2026 budget, alongside fresh external borrowing totaling $6 billion to support government spending, infrastructure, and debt obligations.
The president’s request has also raised questions regarding the benefits of subsidy removal and the current oil windfall from proceeds driven by the US-Iran conflict.
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.
Mustapha Usman is an investigative journalist with the International Centre for Investigative Reporting. You can easily reach him via: musman@icirnigeria.com. He tweets @UsmanMustapha_M