Former Vice President Atiku Abubakar has criticised President Bola Tinubu over plans to secure a fresh $516 million external loan, warning against what he described as “reckless borrowing” amid rising debt concerns.
President Tinubu had written to the Senate, seeking approval for a $516.3 million syndicated loan to finance part of the proposed Sokoto–Badagry Super Highway project. The request was read during plenary by Senate President Godswill Akpabio.
According to the President, the loan will be sourced through Deutsche Bank AG, with support from the Islamic Corporation for the Insurance of Investment and Export Credit. The Federal Government is also expected to provide counterpart funding exceeding ₦265 billion for land acquisition, compensation, and related infrastructure.
The proposed highway, stretching about 1,000 kilometres, is designed to link Sokoto to Badagry, connecting key states across the North-West and South-West to boost economic integration and mobility.
Akpabio, while endorsing the proposal, described the project as a potential economic game changer, noting that borrowing for critical infrastructure is justifiable when it delivers long-term value and supports economic growth.
Following the presentation, the Senate referred the request to its Committee on Local and Foreign Debts for expedited review, with a mandate to report back within one week.
However, Atiku, in a statement issued by his aide Phrank Shaibu, cautioned against accumulating additional debt without clear transparency and accountability frameworks.
He acknowledged the importance of infrastructure development but warned that financing must be handled responsibly to avoid worsening Nigeria’s debt burden.
“At a time when Nigeria is already under significant debt pressure, resorting to another external loan without transparent terms, clear cost-benefit analysis, and a credible repayment plan raises serious concerns,” he said.
The former Vice President also referenced past controversies surrounding major infrastructure contracts, urging the government to ensure strict adherence to procurement laws and due process.
He stressed that while development is necessary, it should not come at the cost of fiscal sustainability.
“Nigeria must build, but it must not borrow blindly. Progress driven by opacity and rising debt is not sustainable,” Atiku added.
The debate highlights growing concerns over Nigeria’s borrowing strategy as the government balances infrastructure expansion with rising debt servicing obligations.
