President Bola Tinubu has written to the senate requesting approval of the Senate to secure $516.3 million in syndicated financing from Deutsche Bank for the construction of the Sokoto- Badagry Super Highway Project, covering Sections I, Phase IA and IB, spanning approximately 120 kilometres.
The request, conveyed in a letter to the Senate, according to the president is in line with the provisions of Sections 16 and 21 of the Debt Management Office Act.
President Tinubu described the Badagry Super Highway as a flagship project under the Renewed Hope Agenda, aimed at opening up Nigeria’s North–South corridor through the development of about 1,000 kilometres of inland dual carriageway linking Kebbi, Niger, Kwara, Oyo, Ogun and Lagos States.
According to the President, the project is expected to improve connectivity, enhance safety and network performance, reduce logistics costs and travel time, and strengthen trade, food security and national cohesion by improving access between production zones, markets and ports.
It will also preserve future infrastructure expansion by accommodating utilities and intermodal transport integration.
The proposed financing is backed by a partial risk guarantee from ICIEC, the insurance arm of the Islamic Development Bank, alongside Federal Government counterpart funding of N265.5 billion and additional provisions for land acquisition, compensation and supporting infrastructure.
The loan has a tenor of nine years, including a grace period of up to three years, with an interest rate capped at CME SOFR plus 5.3 per cent.
The President noted that the financing arrangement has already been approved by the Federal Executive Council and urged the Senate to grant the required approval and include it in the borrowing plan.
The letter was subsequently referred by the Senate President to the Senate Committee on Local and Foreign Debts, with a directive to report back within one week.
