The Senate on Wednesday approved a $516 million loan request by President Bola Tinubu.
The approval follows a report considered at plenary by the Senate Committee on Local and Foreign Debts, Chaired by Senator Aliyu Wamakko.
It was recalled that President Tinubu had sought the approval of the Senate to secure the loan to fund part of the Sokoto-Badagry Superhighway project.
The request was contained in a letter addressed to Senate President Godswill Akpabio and read during last Thursday’s plenary.
The President said the project is a 1,000-kilometre flagship highway intended to link Nigeria’s North-West to the South-West.
The highway will run from Illela in Sokoto State through Kebbi, Niger, Kwara, Oyo and Ogun terminating in Badagry, Lagos State, the proposal said.
The loan will be used to finance the specific Sections 1, Phase 1a and 1b, covering 120 km of the total corridor.
Tinubu said the funding structure is a syndicated loan from Deutsche Bank AG, with partial risk coverage from the Islamic Corporation for the Insurance of Investment and Export Credit.
Lawmakers cited the strategic importance of the highway project during deliberations.
Senator Tahir Monguno said the road was supposed to connect three of Nigeria’s geopolitical zones and cut travel time between the north and south of the country.
Senate President Godswill Akpabio said the Senate had previously approved a request by the President for $5 million to be assessed.
The borrowing arrangement through Abu Dhabi has been stalled because of escalating conflict in the region, preventing the Federal Government from drawing on the funds, he said.
Finding other sources of financing would speed up the ongoing development efforts, he said.
Lawmakers stated that apart 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 approval is expected to be sent to the President today for final action.
Reports say the House of Representatives earlier approved the loan request.
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