More debt as Tinubu seeks Senate nod for $516m loan to fund Sokoto-Badagry superhighway

PRESIDENT Bola Tinubu has approached the Senate for approval of a new external loan of $516.3 million to finance portions of the proposed Sokoto–Badagry Superhighway, a key project within his administration’s infrastructure agenda.

The request was formally conveyed in a letter to Senate President Godswill Akpabio and presented during Thursday’s plenary, paving the way for lawmakers to deliberate on the borrowing plan.

According to the President, the facility, which is expected to be arranged by Deutsche Bank, will fund Sections 1, 1A and 1B of the planned 1,000-kilometre highway linking Nigeria’s North-West to the South-West.

He noted in the letter that approval is being sought for a syndicated financing package worth $516.3 million for the execution of the specified segments, adding that the borrowing has already been captured in the Federal Government’s previously approved borrowing framework.

Tinubu described the Sokoto–Badagry Superhighway as a flagship initiative under the Renewed Hope Agenda, designed to boost national connectivity and economic integration.

READ ALSO: After World Bank facility, Tinubu eyes new loan, debt hits N88.6trn

Providing more details, he explained that the route will pass through Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos states, stretching from Illela to Badagry, with the aim of unlocking economic activity across the corridor.

The president added that the highway is expected to strengthen North–South connectivity, improve road safety, reduce travel time and logistics costs, and enhance trade, food security and national integration by linking production centres to markets and ports.

On financing, Tinubu disclosed that the loan would be structured as a syndicated facility backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, while the Federal Government will contribute N265.5 billion as counterpart funding for land acquisition, compensation and related works.

He further stated that the loan tenure is 9 years, including a grace period of up to 3 years, with interest priced at SOFR plus 5.3 percent annually, referencing benchmarks from the Chicago Mercantile Exchange.

Tinubu also informed lawmakers that the financing plan has already received approval from the Federal Executive Council (FEC) and urged the Senate to expedite its consideration.

During plenary, senators underscored the project’s economic importance, noting that it spans multiple states and could significantly cut travel time between Sokoto and Lagos from about 13 hours to roughly 6 hours.

Akpabio, in his remarks, backed the initiative, describing it as a transformative infrastructure project capable of saving lives and enhancing productivity. He maintained that borrowing for critical infrastructure is justified when it delivers long-term economic returns.

The Senate president subsequently referred the request to the Senate Committee on Local and Foreign Debts, directing it to report back within one week while urging a swift review to facilitate timely legislative action.

Nigeria’s debt profile

The nation’s total public debt rose significantly by N14.61 trillion within one year, reaching N159.28 trillion as of December 31, 2025, based on the latest figures released by the Debt Management Office (DMO).

The latest data indicates an increase from N144.67 trillion recorded at the end of December 2024, reflecting a 10.1 percent year-on-year growth in the country’s debt profile.

In dollar terms, the debt stock also expanded notably, climbing from $94.23 billion in 2024 to $110.97 billion in 2025, an increase of $16.75 billion over the period.

On a quarter-on-quarter basis, public debt grew from N153.29 trillion in September 2025 to N159.28 trillion in December 2025, representing a rise of N5.98 trillion or 3.9 percent over the period.

A closer look at the composition shows that domestic borrowing continues to dominate Nigeria’s debt structure, accounting for 53.27 percent of the total as of December 2025.

READ ALSO: Tinubu debt profile: How much has Nigeria borrowed since 2023?

Domestic debt increased from N74.38 trillion in December 2024 to N84.85 trillion in December 2025, marking a N10.47 trillion rise or 14.1 percent year-on-year. Within the quarter, it also rose by N3.03 trillion from N81.82 trillion recorded in September 2025.

When converted to dollars, domestic debt grew from $48.44 billion to $59.12 billion, highlighting the government’s sustained dependence on local borrowing to finance fiscal gaps, DMO said.