The Senate has approved a $516,333,700 syndicated financing facility for the construction of the Sokoto–Badagry Super Highway.

This followed the consideration and adoption of the report of the Senate Committee on Local and Foreign Debts during plenary on Wednesday

The approval followed a letter from President Bola Tinubu dated April 20, requesting legislative backing for external borrowing in line with the provisions of the Debt Management Office Establishment Act 2011 and the Fiscal Responsibility Act 2007.

The request was referred to the Senate Committee on Local and Foreign Debt on April 23.

The committee subsequently presented its report recommending approval of the loan.

A senator, Adamu Aliero (APC-Kebbi), presented the report on behalf of the committee’s chairman, Aliyu Wamakko (APC-Sokoto).

He explained that the facility would finance Section One, Phase One (A and B1) of the highway, covering about 120 kilometres, as part of a broader corridor expected to span approximately 1,000 kilometres from Sokoto to Badagry.

The lawmaker noted that the project was strategically designed to enhance national connectivity by linking Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos states.

He described it as a major infrastructure initiative aimed at improving trade, transportation efficiency and national integration.

Mr Aliero further stated that the project would reduce travel time, lower logistics costs, improve access between agricultural zones and markets and strengthen supply chains across key sectors, including agriculture and manufacturing.

According to him, the financing arrangement is structured as a syndicated facility provided by Deutsche Bank, with partial credit enhancement support from the Islamic Corporation for the Insurance of Investment and Export Credit.

He said that the facility has a tenor of nine years, including a grace period of up to three years, with an interest rate benchmarked at CME SOFR plus 5.35 per cent per annum.

The senator also noted that though the loan would add to Nigeria’s external debt stock, it was tied to long-term capital development projects expected to generate significant economic returns.

Following the presentation of the report, the request was subjected to debate by the senators, with many of them describing the project as a strategic infrastructure link capable of boosting economic growth across geopolitical zones.

Besides, Mohammed Monguno (APC-Borno) argued that the project would unlock agricultural and transport value chains while reducing unemployment and insecurity along the corridor.

The Deputy Senate President Jibrin Barau emphasised its national integration benefits, noting that it would connect the northern and southern parts of the country more efficiently.

Also, Adetokunbo Abiru (APC-Lagos) referenced previous loan approvals that had yet to be fully disbursed due to global financial constraints, arguing that the current arrangement provided an alternative funding structure for ongoing projects.

Ruling on the motion, the Senate President, Godswill Akpabio, put the recommendation to a voice vote, and it was overwhelmingly adopted.

The Senate, thereafter, approved the $516.3 million syndicated loan for phase one, section one (A and B1) of the project and mandated strict oversight by relevant committees.

The upper legislative chamber also directed quarterly reporting by the Federal Ministry of Finance, the Debt Management Office, and the Federal Ministry of Works as well as the submission of the financing agreement within 30 days.

The lawmakers further stressed the need for transparency, competitive procurement and periodic project evaluation to ensure value for money and timely delivery.

With the approval, the request now awaits transmission to the executive for final processing and implementation.

(NAN)