Concerns are mounting over a proposed $516 million external loan sought by President Bola Tinubu to fund sections of the Sokoto–Badagry Super Highway, with former Vice President Atiku Abubakar and economists urging caution.
The request, submitted to the Senate and read during plenary by Senate President Godswill Akpabio, seeks approval to secure funding from Deutsche Bank for key portions of the 1,000-kilometre highway project.
While acknowledging the importance of infrastructure development, Atiku raised concerns about Nigeria’s rising debt profile and the lack of clarity surrounding borrowing terms.
“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.”
He further urged lawmakers to thoroughly examine the proposal before approval.
“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 are similarly divided. Professor Akpan Ekpo warned that increasing dependence on external loans could expose the economy to risks.
“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.
On the other hand, Ayo Teriba defended the move, arguing that borrowing for long-term infrastructure can be justified.
“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.
The Senate has since referred the request to its committee on local and foreign debts for further review
