By Obioha Victor
President Bola Tinubu has requested Senate approval to secure a $516.3 million loan from Deutsche Bank AG. The borrowing would be backed by insurance from the Islamic Corporation for the Insurance of Investment and Export Credit, which operates as the insurance wing of the Islamic Development Bank.
The President said the loan would be used to pay for the construction of the Sokoto–Badagry Superhighway, a flagship project under his Renewed Hope Agenda.
The proposed highway spans 1,000 kilometers and links Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, stretching from Illela to Badagry.
In a letter to the senate, the President said the project will open up a major economic corridor by enhancing connectivity between Nigeria’s north-west and south-west.
The new loan request comes amid concerns over the country’s rising debt burden and the pressure of debt servicing on the country’s coffers.
Recall that about a month ago, legislators gave the green light to an additional $6 billion foreign borrowing plan put forward by the administration. The bulk of the funds — $5 billion — will come from First Abu Dhabi Bank to help finance the national budget, while the remaining $1 billion is an export finance facility from the United Kingdom, facilitated through Citibank, and will be directed toward renovating Tin Can Island Port and the Lagos Port Complex.
