- According to the proposal, the loan will finance Sections 1, 1A and 1B of the highway, covering approximately 120 kilometres
- When completed, the 1,000-kilometre road will link several states, stretching from Sokoto in the North-West to Badagry
House of Representatives has given approval to President Bola Tinubu’s request to secure a $516.3 million loan from Deutsche Bank AG to support infrastructure development.
Eko Hot Blog reports that the approval was granted during plenary on Tuesday after the presentation of a report by the House Committee on Aids, Loans and Debt Management.
EDITOR’S PICK
- Lassa Fever Hits Oyo, Government Activates Emergency Response
- Bruno Fernandes Reveals Why He Rejected Huge Al Hilal Move
- FG Defends Borrowing Strategy
The funds will be sourced through a syndicated financing arrangement and are earmarked for parts of the Sokoto–Badagry Super Highway project.
According to the proposal, the loan will finance Sections 1, 1A and 1B of the highway, covering approximately 120 kilometres.
The president had earlier written to lawmakers, seeking legislative backing in line with provisions of the Debt Management Office Act.
The Sokoto–Badagry corridor, a major component of the administration’s development plan, is designed to boost connectivity across the country, ease the movement of goods, and reduce travel time along key economic routes.
When completed, the 1,000-kilometre road will link several states, stretching from Sokoto in the North-West to Badagry in Lagos State.
The financing plan is expected to be supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit.
Meanwhile, the Federal Government will contribute counterpart funding exceeding ₦265 billion to cover land acquisition, compensation, and other related costs.
The loan is structured over a nine-year period, including a three-year moratorium, with interest tied to the Secured Overnight Financing Rate plus 5.3 per cent annually.
FURTHER READING
