•Atiku and Tinubu
Former Vice President Atiku Abubakar and economists have raised concerns over President Bola Tinubu’s request for Senate approval of a fresh $516m external loan to fund sections of the Sokoto–Badagry Super Highway.
The president had written to the Senate seeking approval for a $516,333,070 external loan to finance parts of the 1,000-kilometre highway project, a flagship infrastructure initiative under his administration, reports The PUNCH.
The request, addressed to the President of the Senate, Godswill Akpabio, was read during plenary yesterday, formally triggering legislative consideration.
According to the president, the loan — expected to be sourced from Deutsche Bank — will support 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.
Atiku, in a statement signed by his Senior Special Assistant on Public Communication, Phrank Shaibu, acknowledged the importance of the project but warned against rising debt levels and weak transparency in borrowing decisions.
He said, “At a time when Nigeria is already groaning under the weight of unsustainable debt, the resort to yet another foreign loan — without transparent terms, clear cost-benefit analysis, and a credible repayment framework — raises profound questions about prudence and accountability.
“This is not a regional issue, nor should it be framed as one. The people of Northern Nigeria, like their counterparts across the country, deserve development that is sustainable, transparent, and not mortgaged against their future.
“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 be forced to repay.”
The former vice president further cautioned the National Assembly against approving the loan without rigorous scrutiny. “Nigeria must build, but Nigeria must not borrow blindly. Progress anchored on opacity and debt accumulation is neither progress nor leadership— it is postponement of crisis,” Atiku added.
Economists also expressed mixed reactions to the loan request, warning that Nigeria’s rising debt profile poses risks to fiscal sustainability, while others defended borrowing for infrastructure development.
Professor of Economics and Public Policy at the University of Uyo, Prof Akpan Ekpo, warned that Nigeria’s growing reliance on external borrowing is becoming a concern.
“The economy is getting too exposed to external debt, that’s my worry. The debt profile is rising alarmingly, and it’s worrisome and disturbing in the sense that we claim that we have almost reached our revenue target. Certainly, this windfall from oil revenues, what should it be used for?
“The windfall should go into infrastructure because when you keep borrowing, and we are not sure they have done enough cost analysis, whether the tolls they collect on the road will pay for it in the next nine years, it becomes a burden,” Ekpo said.
He added, “GDP does not pay debt, revenue pays debt, and our revenue profile is shaky. Most of our revenue comes from oil, which we do not control in terms of price or output, so it is an exogenous source. I worry that borrowing is getting too much, and there is no clear balance of contingency.”
Ekpo urged the government to explore alternatives such as Public-Private Partnerships, concessions, and Sukuk financing. “There are other options to build roads than borrowing. You can use Public-Private Partnerships, you can concession the road to private investors… The key issue is that we must retain more of the financing within the domestic economy so that it creates jobs and strengthens local capacity,” he said.
However, Chief Executive Officer of Economic Associates, Dr Ayo Teriba, supported the loan, saying it is appropriate for capital projects that generate long-term value.
“As the report noted, the loan is going to fund a capital project that has a life well beyond the loan. The superhighway will open up income opportunities, and repayment will come from the income it creates. I do not see any good president who will not take this kind of opportunity, especially at a 5.3 per cent interest rate, which is far better than the nine per cent we have been paying,” Teriba said.
He added, “Any capital project funded by debt will outlive the loan, so you are not passing net debt to future generations but assets that create opportunities.”
Teriba, however, criticised the exclusion of local banks and called for reforms to unlock domestic funding.
“We have over N28tn trapped in CRR deposits earning zero interest. Why are Nigerian banks not part of these opportunities? It is time to rethink the CRR model… If properly structured, banks can deploy part of their sterilised liquidity into projects like this and earn returns while supporting national development,” he said.
President Tinubu had said the loan would finance Sections 1, 1A, and 1B of the Sokoto–Badagry Super Highway, designed to improve connectivity, reduce travel time between Sokoto and Lagos, and boost economic integration across the corridor. The Senate has referred the request to the Committee on Local and Foreign Debts for further legislative scrutiny.
