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From Ndubuisi Orji, Abuja
The House of Representatives has approved President Bola Tinubu’s request for $516, 333, 007 loan from the Deutsche Bank Ag for the construction of the Sokoto -Badagry Superhighway Section 1 Phase 1A and 1B, as well as the inclusion of the project and it’s financing into the Federal Government’s Rolling Borrowing Plan.
The House approved the loan, at plenary yesterday, after the consideration and adoption of the report of its Committee on Aids, Loans and Debt Management at the Committee of Supply.
Speaker Tajudeen Abbas had at the commencement of Tuesday’s plenary read a letter from President Tinubu seeking lawmakers’ approval for the loan, after which he referred the request to the relevant committee, paving way for the approval of the loan request a few hours later.
The President, in his letter addressed to Abbas, noted that “the purpose of this letter is to request the House of Representatives for the Resolution of the National Assembly (NASS) pursuant to the provisions of Sections 16 and 21 of the Debt Management Bureau (Establishment, Etc.) Act, 2011 for the following: a. Approve the syndicated financing from Deutsche Bank AG in the sum of USD$516,333,007 (Five hundred and sixteen million, three hundred and thirty-three thousand, and seven United States Dollars only) for the construction of the Sokoto – Badagry Superhighway Project Section 1 Phase 1A & 1B (Ch.00+000 – Ch.120+000 km) 120.00km Project.
“The House of Representatives is invited to note that, Sokoto Badagry Superhighway is a flagship infrastructure project of the Renewed Hope Agenda, designed to open Nigeria’s northwest-southwest axis through the construction of an approximately 1,000 km inland dual carriageway linking king Sokoto State, Kebbi State, Niger State, Kwara State, Oyo State, Ogun State and Lagos State, running from Illela to Badagry.
“The Project will improve north-south connectivity, safety and network performance on the corridor; reduce logistics costs and travel times by providing a continuous high-capacity expressway standard link to downstream markets: strengthen trade facilitation, food security and national cohesion through improved access between production zones, markets and ports, and safeguard long-term intermodal flexibility by reserving the central median for future rail integration and accommodating utility corridors. “The proposed financing arrangement consists of: Syndicated Financing: USD$516,333,007 to be secured via Deutsche Bank AG via a partial guarantee cover from ICIEC (Islamic Development Bank insurance arm); Federal Government of Nigeria counterpart funding: NGN 265,542,689,569.54 as part of the land acquisition, compensations, and support infrastructure, etc.”
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The Committee, in its report, recommended that the House “approve the syndicated financing facility from Deutsche Bank AG in the sum of USD 516,333,007 (five hundred and sixteen million, three hundred and thirty-three thousand and seven USD) for the construction of the Sokoto–Badagry Superhighway Project Section 1 Phase IA & IB (120.00km).
“Approve the inclusion of the project and its financing into the Federal Government’s Rolling Borrowing Plan; approve the financing structure and terms as presented, including: Partial guarantee covered by Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC).”
It also recommended the approval of “Tenor of 9 years with up to 3 years grace period; Interest rate benchmarked at CME SOFR + 5.35% per annum; mandate strict legislative oversight, including: Quarterly reporting by the Federal Ministry of Finance, DMO, and Ministry of Works on project implementation and disbursement; Submission of executed financing agreements to the National Assembly within 30 days of financial close; Continuous monitoring by relevant Committees.
“Ensure transparency and value for money, including: competitive and transparent procurement processes; independent technical and financial audits; periodic evaluation of project milestones and outcomes.”
The House had on March 31 approved President Tinubu’s request to Establish a Structured Total Return Swap External Financing Programme of $5, 000,000,000 with First Abu Dhabi Bank, to Support Federal Government Funding and Fiscal Liquidity Management and $1,000,945,693.55 Uk Export Finance (UKEF) covered Loan Facility Arranged by Citibank, for the Rehabilitation of Ports Project.
The two requests were conveyed to the House in a letter by the President, which was read by Abbas at Tuesday’s plenary, and thereafter referred to the House Committee on Aids, Loans and Debt Management, which submitted its reports to the Green Chamber a few hours later for consideration and approval.
