President Bola Tinubu has written to the Senate seeking its approval for a fresh external borrowing of $516,333,070 to fund sections of the proposed Sokoto–Badagry Super Highway, a flagship project under his administration’s infrastructure drive.
The request, contained in a letter addressed to the President of the Senate, Godswill Akpabio, was read during plenary on Thursday.
According to the President, the loan, expected to be sourced from Deutsche Bank, will support the construction of Sections 1, 1A and 1B of the 1,000-kilometre highway designed to link Nigeria’s North-West to the South-West corridor.
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.”
Providing further details, Tinubu explained that the project would traverse Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, stretching from Illela to Badagry, and is expected to enhance connectivity and economic integration significantly.
“The project is designed to open up Nigeria’s northwest–southwest economic corridor through the construction of an approximately 1,000-kilometre high-capacity carriageway, linking Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos States, stretching from Illela to Badagry.
“It is also expected to enhance north–south connectivity and road safety, improve network performance along the corridor, reduce logistics costs and travel time, facilitate trade and strengthen food security and promote national integration by linking production zones to markets and ports,” he stated.
Tinubu further disclosed that the financing structure includes a syndicated loan backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, while the Federal Government would provide counterpart funding of ₦265.5bn for land acquisition, compensation and related infrastructure.
He noted that the loan would run for nine years, including a grace period of up to three years, with an interest rate benchmarked at the Chicago Mercantile Exchange SOFR plus 5.3 per cent per annum.
The Federal Executive Council, he added, had already approved the financing arrangement. Tinubu, in the letter, urged the Senate to fast-track the request.
