Former Vice President Atiku Abubakar and several economists have raised concerns over President Bola Tinubu’s request for Senate approval of a fresh $516 million external loan to fund sections of the Sokoto–Badagry Super Highway.
The President formally wrote to the Senate, seeking approval for a $516,333,070 external facility to finance parts of the 1,000-kilometre highway project, a flagship infrastructure initiative of his administration.
The request, addressed to Senate President Godswill Akpabio, was read during plenary on Thursday, initiating legislative consideration.
According to the President, the loan—expected to be sourced from Deutsche Bank—will fund the construction of Sections 1, 1A, and 1B of the highway linking Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, stretching from Illela to Badagry.
In a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku acknowledged the importance of the project but warned against Nigeria’s rising debt burden and lack of transparency in borrowing.
“At a time when Nigeria is already groaning under unsustainable debt, resorting to another foreign loan—without transparent terms, clear cost-benefit analysis, and a credible repayment framework—raises serious concerns about accountability,” he said.
He stressed that the project should not be viewed through a regional lens, noting that all Nigerians deserve development that is sustainable and not at the expense of future generations.
“What Nigerians expect is not just ambitious projects, but responsible financing. Development must not become a euphemism for deepening debt traps that generations yet unborn will repay,” Atiku added.
He further urged the National Assembly to subject the request to thorough scrutiny, cautioning against indiscriminate borrowing.
“ Nigeria must build, but must not borrow blindly. Progress built on opacity and debt accumulation is not progress—it is a postponement of crisis,” he said.
Economists offered mixed reactions to the loan request, reflecting concerns over Nigeria’s growing debt profile.
Professor of Economics and Public Policy at the University of Uyo, Prof. Akpan Ekpo, warned that increasing reliance on external borrowing poses risks to fiscal sustainability.
“The economy is becoming too exposed to external debt. Our debt profile is rising alarmingly, and that is disturbing, especially when our revenue base remains weak,” he said.
Ekpo noted that debt repayment depends on revenue, not GDP, highlighting Nigeria’s heavy dependence on oil income, which is subject to external fluctuations.
He questioned whether adequate cost-benefit analysis had been conducted, particularly regarding the ability of toll revenues to offset the loan within a reasonable timeframe.
The economist advised the government to explore alternatives such as Public-Private Partnerships, concessions, and Sukuk financing to reduce reliance on borrowing.
“There are other ways to fund infrastructure. PPPs and concessions can attract private investment while strengthening local capacity and creating jobs,” he said.
However, Chief Executive Officer of Economic Associates, Dr Ayo Teriba, supported the loan, describing it as suitable for long-term capital projects.
“The loan is funding an asset that will outlive its repayment period. The superhighway will create income opportunities, and repayment will come from the value it generates,” he said.
Teriba added that the 5.3 per cent interest rate is more favourable compared to higher rates Nigeria has previously paid.
He also criticised the exclusion of local banks from such financing arrangements, calling for reforms to unlock domestic liquidity.
“We have over N28 trillion trapped in CRR deposits earning zero interest. Nigerian banks should be part of these opportunities to support development while earning returns,” he noted.
President Tinubu maintained that the loan will accelerate the construction of key sections of the Sokoto–Badagry Super Highway, aimed at improving connectivity, reducing travel time between Sokoto and Lagos, and boosting economic integration.
The Senate has since referred the request to its Committee on Local and Foreign Debts for further legislative scrutiny, Dip Connect Online News reports.
ADEOLA KUNLE
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