Tinubu Seeks $516.33m Loan To Construct Sokoto-Badagary Super Highway

President Bola Tinubu has sought the approval of the Senate to access a loan facility of $516.33 million to fund the construction of the Sokoto–Badagry Super Highway.

The syndicated financing facility is being arranged through Deutsche Bank, according to a letter of request the President sent to the Senate on Thursday.

He wrote:

“The proposed financing arrangement comprises a syndicated loan to be secured through Deutsche Bank AG, supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the insurance arm of the Islamic Development Bank.

“The Federal Government will provide counterpart funding in the sum of ₦265,542,689,569, covering land acquisition, compensation, and ancillary infrastructure.

“The loan has a tenure of nine years, including a grace period of up to three years, with an interest rate not exceeding the Chicago Mercantile Exchange (CME) SOFR plus 5.3 percent per annum.

“The Federal Executive Council has approved the financing arrangement and its terms.”

The President outlined the scope of the project and its expected benefits to the nation.

“The project is designed to open up Nigeria’s north-west–south-west 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,” Tinubu explained.

“The project is 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.

Promote national integration by linking production zones to markets and ports. Provide long-term intermodal flexibility through provision for future rail integration and utility corridors.”

The request, which was read by the President of the Senate, Godswill Akpabio, was referred to the Senate Committee on Local and Foreign Debts.

The committee, chaired by Senator Aliyu Magatakarda Wamakko, was given one week to report back to the Senate.

Before the referral, Senator Adamu Aliero spoke on the project, praising Tinubu for the initiative.

He said the road, when completed, would reduce travel time between Sokoto and Lagos to about six hours, from 13 hours.

Akpabio, while rounding off the debate, noted that borrowing is not a problem so long as it is deployed productively.

“It is better to borrow for projects,” he stated.