Senate Approves $516M Loan for Sokoto-Badagry Superhighway

On Wednesday, the Nigerian Senate approved a loan of $516,333,007 requested by President Bola Tinubu for the construction of the Sokoto-Badagry superhighway. The approval followed a report presented by Senator Adamu Aliero from Kebbi Central during the Senate's plenary session.

Senators, including Tahir Monguno and Adetokunbo Abiru, commended the project for its potential to enhance economic development, create jobs, and improve agricultural value chains. The superhighway will connect three geopolitical zones: North West, North Central, and South West, facilitating trade and economic activities.

The financing arrangement involves a syndicate loan from Deutsche Bank AG, with partial risk guarantees from the Islamic Corporation for the Insurance of Investment and Export Credit and the Islamic Development Bank. The federal government will provide counterpart funding of $265,542,689.

The loan has a nine-year tenure, including a three-year grace period, with an interest rate not exceeding SOFR plus 5.3% per annum. The project aims to improve logistics, reduce travel time, and strengthen food security.