Reps approves $516 million loan for Sokoto/Badagry Superhighway phase 1
The House of Representatives on Tuesday approved the request of President Bola Ahmed Tinubu to obtain a loan of $516,333,007 from the Dutch bank for the construction of the Sokoto/Badagry
The House of Representatives on Tuesday approved the request of President Bola Ahmed Tinubu to obtain a loan of $516,333,007 from the Dutch bank for the construction of the Sokoto/Badagry super highway.
The approval of the loan followed the presentation and consideration of a report from the House Committee on Aids, Loans and Debts Management recommending the approval of the syndicated financing from Deutsche Bank Ag for the Construction of the Sokoto-Badagry Superhighway project Section 1 Phase 1A and 1B”, spanning about 120.00km.
The House also approved the inclusion of the project and it’s financing into the Federal Government’s Rolling Borrowing Plan as well as the financing structure and terms which include partial guarantee covers by Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).
Read Also: Reps seek flyovers, pedestrian bridges on Kaduna highways over rising fatalities
The loan is with a tenure of 9 years with up to 3 years grace period, an Interest rate benchmarked at CME SOFR + 5.35% per annum and strict legislative oversight, including quarterly reporting by the Federal Ministry of Finance, DMO, and Ministry of Works on project implementation and disbursement.
The approval include submission of executed financing agreements to the National Assembly within 30 days of financial close; continuous monitoring by relevant Committees, ensuring transparency and value for money,through competitive and transparent procurement processes; independent technical and financial audits and periodic evaluation of project milestones and outcomes.
