The House of Representatives has approved President Bola Tinubu’s request for a $516.3m loan arranged by Deutsche Bank AG to fund sections of the Sokoto–Badagry Super Highway.
It was said that the approval was given during plenary in Abuja on Tuesday after Abdullahi Rasheed, deputy chairman of the House Committee on Aids, Loans and Debts Management, presented the committee’s report.
Notably, the loan will be used for Section 1, Phase 1A and Phase 1B of the project, covering about 120 kilometres.
In a letter to lawmakers last week, Tinubu said the financing would come from a syndicated facility led by Deutsche Bank.
He asked for a resolution under Sections 16 and 21 of the Debt Management Office Act 2011 to secure the funds.
The 1,000-kilometre highway is a flagship project of the Renewed Hope Agenda.
READ ALSO: APC Sets N100m Fee for Presidential Forms Ahead of 2027 Elections
It is designed to link Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos states, connecting Illela to Badagry.
The government says it will improve national connectivity, ease movement of goods along key economic corridors and cut travel times.
According to the president, the loan will be backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
In addition, the Federal Government will provide more than N265bn in counterpart funding for land acquisition, compensation and related infrastructure.
The facility runs for nine years, including a three-year grace period, and interest is set at the Chicago Mercantile Exchange SOFR plus 5.3% per annum.
Moreso, the Federal Executive Council has already approved the financing plan.