President Bola Tinubu has written to the Senate, seeking approval to borrow a fresh $516,333,070 loan.
A letter to the President of the Senate, Senator Godswill Akpabio, read on Thursday during plenary, stated that the loan will be obtained from Deutsche Bank, and it is aimed at financing the already approved borrowing plan for it. Sokoto-Badagry 1,000 Super Highway.
Tinubu wrote: “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 ₦265,542,689,569, 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.
“The Federal Executive Council has approved the financing arrangement and its terms.”
The President outlined the scope of the project and its expected benefits to the nation.
“The project is designed to open up Nigeria’s north-west–south-west 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,” Tinubu explained.
“The project is 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.
Promote national integration by linking production zones to markets and ports. Provide long-term intermodal flexibility through provision for future rail integration and utility corridors.”
Tinubu in the letter is asking for an expeditious passage.
Akpabio referred the letter to the Committee on Local and Foreign Debts for legislative action and a report back in one week.
