The Senate on Wednesday approved a $516 million syndicated loan requested by President Bola Tinubu to fund the construction of Section 1, Phases 1A and 1B of the Sokoto–Badagry Super Highway.
This followed the Senate Committee on Local and Foreign Debts, chaired by Aliyu Wamakko, presenting a report in plenary.
The committee further suggested that the Federal Government’s borrowing strategy include the finance obtained through Deutsche Bank AG.
According to the committee’s report, the loan has a nine-year term with a three-year grace period and is partially guaranteed by the Islamic Corporation for the Insurance of Investment and Export Credit, or ICIEC.
During their discussions, the senators emphasised the highway project’s strategic significance.
Godswill Akpabio, the Senate President, noted that an earlier $5 million request made by the President and accepted by the Senate needed to be evaluated.
He underlined that the growing unrest in the area had caused the borrowing agreement through Abu Dhabi to halt, making it impossible for the Federal Government to access the money.
The Senate President further added that further development initiatives would be accelerated by obtaining alternate funding sources.
The Senate’s approval is however expected to be transmitted to the President today for final action.
BACKSTORY…
Recall that on April 23, President Tinubu sent an official letter to the Senate requesting permission to use a foreign syndicated loan to fund the highway’s development.
He said that the highway project was a vital component of his administration’s Renewed Hope Agenda, which aimed to boost the flow of products along important economic corridors, decrease travel times, and promote national connectedness.
The proposed 1,000-kilometre road is expected to link Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, connecting Illela to Badagry.
The president also stated that the Federal Government would provide counterpart funding of more than N265 billion for land acquisition, compensation, and related infrastructure.
Meanwhile the Islamic Corporation for the Insurance of Investment and Export Credit, or ICIEC, would back the financing arrangement with a partial risk guarantee.
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