President Bola Ahmed Tinubu has approached the Senate for approval to secure an additional loan amounting to $516,333,007 from Deutsche Bank. The purpose of this funding is to support the development of Sections 1, Phase 1a, and 1b of the planned Sokoto-Badagry Superhighway.
In a communication conveyed to Senate President Godswill Akpabio during a plenary session, the President outlined that this significant 1,000km infrastructure project is designed to establish a vital link between Nigeria's Northwest and Southwest geopolitical zones.
The proposed highway will traverse Sokoto State, starting from Illela, and extend through Kebbi, Niger, Kwara, Oyo, and Ogun States before reaching its terminus in Badagry, Lagos State. The current loan request specifically targets the development of initial segments, Sections 1, Phase 1a, and 1b, which collectively span 120 kilometers of the extensive corridor.
According to the President's correspondence, the financing structure involves a syndicated loan facilitated by Deutsche Bank AG. This loan will be complemented by a partial risk guarantee provided by the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), which operates as the insurance division of the Islamic Development Bank.
The Nigerian government is committed to providing counterpart funding for the project, estimated at ₦265,542,689,569. This contribution will cover expenses such as land acquisition, compensation for affected parties, and the development of associated infrastructure.
The loan agreement stipulates a nine-year repayment period, inclusive of a grace period extending up to three years. The interest rate is capped at not more than the Chicago Mercantile Exchange (CME) SOFR plus an additional 5.3 percent per annum.
President Tinubu indicated that the Federal Executive Council has already given its endorsement to this financing arrangement and urged the Senate to incorporate the loan into the nation's borrowing plan.
The strategic importance of the superhighway, as detailed in the letter, includes enhancing North-South connectivity, improving road safety, and reducing overall logistics costs for businesses and citizens.
Furthermore, the project is anticipated to bolster trade activities, contribute to food security by facilitating the movement of agricultural produce from production areas to markets and ports, and promote national cohesion. Provisions have also been made within the central median for future integration of rail transport and utility corridors.
Following the reading of the President's request, Senate President Godswill Akpabio directed the matter to the Committee on Foreign and Local Debts for further review.
The committee has been tasked with submitting its findings and recommendations within a one-week timeframe.
Senator Mohammed Adamu Aliero, representing Kebbi Central, expressed strong support for the initiative, noting the long history of the project, which has been conceptualized for the past 55 years. He shared his positive impressions after personally inspecting the ongoing work, which involves both concrete and asphalt road construction and is equipped with solar streetlights.
Senator Aliero projected that upon completion, the travel time between Sokoto and Lagos would be significantly reduced by over 70 percent, transforming a journey currently taking approximately 13 hours to a mere six hours.
He implored the Senate to expedite the approval process once the committee presents its report.
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