By Anayo Akwitti
President Bola Tinubu has requested the National Assembly to approve the sum of over five hundred and sixteen million dollars for the construction of the Sokoto–Badagry Superhighway Project.
The President’s request was read during plenary on Thursday by the President of the Senate, Godswill Akpabio.
In the letter, Tinubu stated clearly that his request was pursuant to the provisions of Sections 16 and 21 of the Debt Management Office (Establishment) Act, 2011.
According to the letter the approval is sought for a syndicated financing facility from Deutsche Bank and it’s inclusion 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 President wrote.
He continued by stating that 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.
“The project is expected to enhance north–south connectivity and road safety, improve network performance along the corridor, reduce logistics costs and travel time and facilitate trade and strengthen food security” the President reiterated.
He said the project will promote national integration by linking production zones to markets and ports while providing long-term intermodal flexibility through provision for future rail integration and utility corridors.
The President explained that the proposed financing arrangement comprises a syndicated loan to be secured through Deutsche Bank AG, supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the insurance arm of the Islamic Development Bank.
“The Federal Government will provide counterpart funding in the sum of ₦265.5 billion, covering land acquisition, compensation, and ancillary infrastructure. The loan has a tenure of nine years, including a grace period of up to three years, with an interest rate not exceeding the Chicago Mercantile Exchange (CME) SOFR plus 5.3 percent per annum” he added
