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Tinubu asks Senate to approve fresh $516m loan for Sokoto-Badagry highway
President Bola Tinubu has written to the Nigerian Senate, seeking approval for a $516.3 million foreign loan for the construction of the Sokoto-Badagry highway.
The letter was read during plenary on Thursday by Senate president Godswill Akpabio.
Tinubu is requesting a resolution in line with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011, to enable the Federal Government secure financing for Sections 1, Phase 1A, and 1B of the project.
According to the president, the project which is a flagship initiative under the Renewed Hope Agenda, is designed to enhance national connectivity, reduce travel time, and improve the movement of goods across key economic corridors.
The letter read in part: “Specifically, approval is sought for the syndicated financing facility from Deutsche Bank in the total sum of US$516,333,007 for the execution of Sections 1, 1A, and 1B of the Sokoto-Badagry Superhighway Project.
“The inclusion of the said financing in the Federal Government’s borrowing plan, as earlier approved by the National Assembly. The Senate is invited to note that the Sokoto–Badagry Superhighway is a flagship infrastructure initiative under the Renewed Hope Agenda.”
The proposed 1,000-kilometre road project is expected to link Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, connecting Illela to Badagry.
“The project is designed to open up Nigeria’s northwest–southwest 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.
“It is also 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 and promote national integration by linking production zones to markets and ports,” he said.
The loan which is structured for nine years, including a three-year grace period, has already gotten its financing plan approved by the Federal Executive Council, as the president urged the Senate for a speedy consideration.
“I look forward to the expeditious consideration and approval of this request by the Senate. Please accept, Distinguished Senate President and Distinguished Senators, the assurances of my highest regards,” he added.
Akpabio further referred the request to the Senate Committee on Local and Foreign Debts, with a mandate to report back within one week, stressing on the positive outcome of the loan, which according to him, would improve road safety and aid national integration.
