• Tinubu seeks $516m loan for 1,000 km Sokoto-Badagry highway

• Project to cut travel time, boost trade and agriculture supply chains

• Construction underway, completion targeted by 2027

Nigerian President Bola Tinubu has requested Senate approval for a $516.3 million external loan to finance parts of the Sokoto-Badagry highway project, local media reported. The corridor spans more than 1,000 km.

The syndicated loan is expected to be raised from Deutsche Bank and would cover sections 1, 1A and 1B of the project, which the government has identified as a key pillar of its “Renewed Hope” agenda. The highway will pass through Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos states, linking Illela to Badagry.

The government says the highway will significantly reduce transportation costs and cut travel time between Sokoto and Lagos from around 13 hours to six hours. The reduction is expected to boost agricultural supply chain competitiveness, support food security and stimulate inter-regional trade.

The federal government is seeking to connect the main agricultural production zones of the northwest to urban markets and port facilities in Lagos, aiming to streamline the movement of goods and reduce logistical losses. This comes as post-harvest losses in Nigeria were estimated at nearly $10 billion in 2024, according to official data.

Unveiled last September, the Nigerian Post-Harvest Systems Transformation Program (NiPHaST) plans to mobilize $3.5 billion over 10 years to modernize storage infrastructure at household, community and national reserve levels.

Construction on the highway was officially launched in October 2024. The project is expected to be completed by 2027, according to Public Works Minister David Umahi. The financing structure includes a syndicated loan partially guaranteed by the Islamic Corporation for the Insurance of Investment and Export Credit, while the federal government will contribute 265.5 billion naira (approximately $196 million) for land acquisition, compensation and related infrastructure.

Henoc Dossa