The House of Representatives has approved the request of President Bola Tinubu for a $516.3 million syndicated loan to finance key sections of the Sokoto–Badagry Superhighway project.
Thi followed the consideration and approval of report of the House Committee Aids, Loans and Debts Management at plenary on Tuesday.
Tinubu in a letter addressed to Speaker Abbas Tajudeen who read at the resumed plenary, requested the House to grant the approval for the loan to finance the project.
He said the Sokoto Badagry Superhighway is a flagship infrastructure project of the Renewed Hope Agenda, designed to open Nigeria’s northwest-southwest axis through the construction of an approximately 1,000 km inland dual carriageway linking king Sokoto state, Kebbi state, Niger state, Kwara state, Oyo state, Ogun state and Lagos state, running from Illela to Badagry.
According to Tinubu, the project will improve north-south connectivity, safety and network performance on the corridor; reduce logistics costs and travel times by providing a continuous high-capacity expressway standard link to downstream markets.
He added that the project will, “strengthen trade facilitation, food security and national cohesion through improved access between production zones, markets and ports, and
safeguard long-term intermodal flexibility by reserving the central median for future rail integration and accommodating utility corridors.”
Tinubu stated that, the proposed financing arrangement consists of: “syndicated financing: USD$516,333,007 to be secured via Deutsche Bank AG via a partial guarantee cover from ICIEC (Islamic Development Bank insurance arm).
“Federal Government of Nigeria counterpart funding: NGN 265,542,689,569.54 as part of the land acquisition, compensations, and support infrastructure.”
Consequently, the Green Chamber approved the syndicated financing facility from Deutsche Bank AG in the sum of USD 516,333,007 for
the construction of the Sokoto–Badagry Superhighway Project Section 1 Phase IA & IB
(120.00km).
It also approved the inclusion of the project and it’s financing into the Federal Government’s rolling borrowing plan; the financing structure and terms as presented.
These include: “a partial guarantee covers by Islamic Corporation for the Insurance of Investment and Export
Credit (ICIEC); tenor of 9 years with up to 3 years grace period; interest rate benchmarked at CME SOFR + 5.35% per annum.”
It mandated strict legislative oversight, including quarterly reporting by the Federal Ministry of Finance, DMO, and Ministry of Works on
project implementation and disbursement and submission of executed financing agreements to the National Assembly within 30 days of financial close.
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