The House of Representatives has approved President Bola Tinubu’s request to borrow $516,333,700 in syndicated financing from Deutsche Bank AG to support the construction of sections of the Sokoto-Badagry Super Highway.
Gatekeepers News reports that the approval was granted during plenary on Tuesday in Abuja following the presentation of a report by Abdullahi Rasheed, deputy chairman of the House Committee on Aids, Loans and Debt Management.
President Tinubu had written to the lawmakers seeking approval for the $516.3 million facility, which will fund Sections 1, 1A and 1B of the project, covering about 120 kilometres.
He requested the resolution in line with Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011, to enable the federal government secure the financing.
The president described the highway as a flagship project under his Renewed Hope Agenda, aimed at improving national connectivity, easing movement of goods across key economic corridors and significantly reducing travel time.
The 1,000-kilometre road is expected to link Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos states, connecting Illela in Sokoto State to Badagry in Lagos.
According to Tinubu, the financing arrangement will be backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
He added that the federal government would provide counterpart funding of more than ₦265 billion for land acquisition, compensation and related infrastructure.
The president also said the loan is structured for nine years with a three-year grace period and carries an interest rate pegged at the Chicago Mercantile Exchange SOFR plus 5.3 per cent per annum.
The financing plan had earlier received approval from the Federal Executive Council (FEC).
