President Bola Ahmed Tinubu has formally requested the Nigerian Senate approval for a $516 million dollar loan to fund key phases of the proposed Sokoto–Badagry Superhighway.
The request is communicated in a letter read on the floor by Senate President Godswill Akpabio.
The loan sourced from Deutsche Bank, will finance Sections 1, Phase 1A and 1B of the 1,000-kilometre highway project, according to the letter partly read, “Specifically, approval is sought for the syndicated financing facility from Deutsche Bank in the total sum of US$516,333,007 for the execution of Sections 1, 1A, and 1B of the Sokoto–Badagry Superhighway Project.
“The inclusion of the said financing in the Federal Government’s borrowing plan, as earlier approved by the National Assembly.
The Senate is invited to note that the Sokoto–Badagry Superhighway is a flagship infrastructure initiative under the Renewed Hope Agenda”.
The road is expected to run from Illela in Sokoto State through Kebbi, Niger, Kwara, Oyo and Ogun states, terminating in Badagry, Lagos.
The administration says the project will improve connectivity between the Northwest and Southwest, reduce logistics costs, and enhance trade and food security.
The financing arrangement includes a nine-year tenor with a three-year grace period, backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit.
The Federal Government is also expected to provide over 265-billion naira as counterpart funding for land acquisition and related infrastructure.
The Senate has since referred the request to its Committee on Foreign and Local Debts for further legislative scrutiny, with a report expected within one week, according to multiple reports.
