President Bola Ahmed Tinubu has asked the Senate to approve a $516.3 million external loan to fund sections of the Sokoto–Badagry Super Highway project.

The request, conveyed in a letter to Senate President Godswill Akpabio and read during plenary, outlines plans to finance Sections 1, Phase 1A and 1B of the highway.

The loan is expected to be sourced through Deutsche Bank and is part of the administration’s infrastructure drive aimed at improving connectivity and boosting economic activities across the country.

The proposed highway, spanning about 1,000 kilometres, will link Sokoto to Badagry, passing through several states including Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos, and is expected to enhance trade and reduce travel time.

The financing arrangement includes a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, while the Federal Government will provide counterpart funding for land acquisition and compensation.

The loan is structured over nine years, with a three-year grace period and interest tied to a benchmark rate plus 5.3 per cent annually.

Following its presentation, the Senate referred the request to its Committee on Local and Foreign Debts for review, with a directive to report back within a week.