Former Vice President Atiku Abubakar and several economists have raised concerns over President Bola Ahmed Tinubu’s request for Senate approval of a $516 million external loan to fund sections of the Sokoto–Badagry Super Highway project.
In a statement signed by his aide, Phrank Shaibu, Atiku questioned the transparency and sustainability of the borrowing plan.
“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,” he said.
The loan request, addressed to Senate President Godswill Akpabio, was read during plenary on Thursday, formally initiating legislative consideration by the National Assembly.
Reacting to the proposal, Atiku Abubakar acknowledged the importance of infrastructure development but warned against what he described as growing fiscal risks tied to Nigeria’s rising debt profile.
He further cautioned lawmakers 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.
Loan details and project scope
According to the President, the proposed $516,333,070 loan, expected to be sourced from Deutsche Bank will finance Sections 1, 1A, and 1B of the 1,000-kilometre Sokoto–Badagry Super Highway.
The project is designed to connect key states including Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos, stretching from Illela to Badagry, with the aim of boosting economic integration and reducing travel time across the corridor.
Economists divided over borrowing strategy
Professor Akpan Ekpo of the University of Uyo warned that increasing dependence on external borrowing could expose the economy to long-term risks.
“The economy is getting too exposed to external debt… GDP does not pay debt, revenue pays debt, and our revenue profile is shaky,” he said, stressing that Nigeria’s reliance on oil revenue makes repayment uncertain.
Mr Ekpo urged the government to explore alternative financing models such as Public-Private Partnerships, concessions, and Sukuk bonds to reduce borrowing pressure and boost domestic participation.
Support for infrastructure financing
However, Chief Executive Officer of Economic Associates, Ayo Teriba, defended the loan, arguing that borrowing for long-term infrastructure projects is economically justified.
“The loan is going to fund a capital project that has a life well beyond the loan… repayment will come from the income it creates,” Mr Teriba said, noting that the reported 5.3% interest rate is relatively favourable compared to previous borrowing costs.
He added that infrastructure investments like the superhighway could unlock economic opportunities and should not be viewed purely as debt burdens.
Mr Teriba, however, criticised the limited involvement of Nigerian financial institutions, pointing to large volumes of idle funds within the banking system.
“We have over N28 trillion trapped in CRR deposits earning zero interest… If properly structured, banks can deploy part of this into projects like this and support national development,” he said.
Legislative process underway
The Senate has referred the loan request to its Committee on Local and Foreign Debts for further scrutiny, as debates continue over balancing infrastructure development with fiscal sustainability.
The Sokoto–Badagry Super Highway remains one of the Tinubu administration’s flagship infrastructure projects, aimed at enhancing connectivity and economic growth across multiple regions of the country.
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