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President Bola Tinubu’s $516 million loan request was approved by the Senate on Wednesday.
This approval was consequent upon a report considered at plenary by the Senate Committee on Local and Foreign Debts Chaired by Senator Aliyu Wamakko.
It was recalled President Tinubu had sought the approval of the Senate to obtain the loan to fund part of the Sokoto-Badagry Superhighway project.
The request was contained in a letter addressed to the Senate President, Godswill Akpabio and read out during last Thursday’s plenary.
The President said the project is a flagship highway of 1,000-kilometre designed to connect Nigeria’s North-West to the South-West.
The proposal said the highway will run from Illela in Sokoto State through Kebbi, Niger, Kwara, Oyo and Ogun terminating in Badagry, Lagos State.
The loan will be used to finance the specific Sections 1, Phase 1a and 1b, which comprise 120 km of the total corridor.
The funding structure is a syndicated loan from Deutsche Bank AG with some risk coverage from the Islamic Corporation for the Insurance of Investment and Export Credit, Tinubu said.
Lawmakers pointed to the strategic importance of the highway project during the discussions.
Senator Tahir Monguno said the road was designed to link three of Nigeria’s geopolitical zones and reduce travel time between the north and south of the country.
Senate President Godswill Akpabio said the Senate had earlier approved a request by the President to assess $5 million.
He said the Federal Government was unable to draw on the funds because the borrowing arrangement through Abu Dhabi had been stalled by escalating conflict in the region.
Securing additional financing would accelerate the ongoing development work, he said.
Lawmakers said, aside from transportation, the Sokoto-Badagry Super Highway project is expected to boost agricultural productivity through improved market access, support for dam development, and strengthening of the agricultural value chain.
The Senate’s passage is expected to be sent to the President for final action today.
Reports say the House of Representatives had earlier approved the loan request.
