The House of Representatives has approved President Bola Tinubu’s request to secure a $516,333,007 foreign loan for the construction of sections of the proposed Sokoto-Badagry superhighway.
The approval was granted during Tuesday’s plenary after the presentation of a report by Abdullahi Rasheed, deputy chairman of the House Committee on Aids, Loans and Debt Management.
Lawmakers gave the request swift consideration, moving from the reading of the president’s letter by Speaker Tajudeen Abbas to deliberation at the Committee of Supply and final passage.
As part of the approval, the House directed the Ministry of Finance, the Debt Management Office, and the Ministry of Works to submit quarterly reports on fund disbursement and implementation progress.
In his letter, Tinubu said the loan would be sourced through a syndicated financing facility arranged by Deutsche Bank and would fund Sections 1, 1A and 1B of the highway, covering about 120 kilometres.
He described the Sokoto-Badagry superhighway as a flagship project under the Renewed Hope Agenda aimed at connecting Nigeria’s North-West and South-West economic corridor through a nearly 1,000-kilometre carriageway.
The road is expected to pass through Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos states, stretching from Illela to Badagry.
According to the president, the financing package will be backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, the insurance arm of the Islamic Development Bank.
Tinubu added that the Federal Government would provide counterpart funding of N265.54 billion for land acquisition, compensation and related infrastructure.
He said the loan has a nine-year repayment period, including a grace period of up to three years, with an interest rate not exceeding CME SOFR plus 5.3 per cent annually.
The president noted that the project would reduce transport costs and travel time, improve trade, boost food security, strengthen national integration, and allow future rail and utility corridor expansion.
Last Thursday, Senate President Godswill Akpabio also read the president’s request on the Senate floor and referred it to the Senate Committee on Local and Foreign Debts for consideration.
