Former Vice President Atiku Abubakar and several economists have expressed reservations over a fresh external borrowing request by President Bola Ahmed Tinubu, who has sought legislative approval for a $516 million loan to fund segments of the ambitious Sokoto–Badagry Super Highway project.
The President formally transmitted the request to the Senate, where it was read during plenary by Senate President Godswill Akpabio, thereby initiating the process for legislative consideration. According to details contained in the communication, the proposed loan—valued at $516,333,070—is expected to be sourced from Deutsche Bank and will finance the initial phases of the highway’s construction.
The Sokoto–Badagry Super Highway, a flagship infrastructure initiative of the current administration, is projected to span approximately 1,000 kilometres, linking key states across Nigeria, including Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos. The specific components earmarked for funding under the proposed loan include Sections 1, 1A, and 1B, covering the stretch from Illela in Sokoto State to Badagry in Lagos State. The project is designed to significantly enhance transportation efficiency, reduce travel time across regions, and stimulate economic activity along the corridor.
Despite the strategic importance of the project, Atiku Abubakar has cautioned against what he described as a growing pattern of excessive borrowing without sufficient transparency and accountability. In a statement issued through his media aide, Phrank Shaibu, the former vice president acknowledged the need for infrastructure development but warned that the country’s rising debt profile poses serious risks.
He argued that Nigeria is already grappling with a heavy debt burden and that additional external loans—especially those lacking clearly defined terms and repayment frameworks—could further strain the nation’s fiscal stability. According to him, development initiatives should not come at the expense of long-term economic sustainability.
“At a time when Nigeria is already groaning under the weight of unsustainable debt, resorting to yet another foreign loan without transparent terms, clear cost-benefit analysis, and a credible repayment framework raises profound concerns,” he stated. He further stressed that infrastructure development should not be framed in regional terms, noting that all Nigerians deserve projects that are both sustainable and responsibly financed.
Atiku also urged the National Assembly to exercise caution and subject the loan request to rigorous scrutiny before granting approval. He maintained that while infrastructure expansion is necessary, borrowing without adequate oversight could lead to deeper financial challenges in the future. “Nigeria must build, but Nigeria must not borrow blindly,” he warned, adding that unchecked debt accumulation could ultimately translate into economic burdens for future generations.
The concerns raised by the former vice president were echoed by some economists, who pointed to Nigeria’s increasing reliance on external borrowing as a potential source of vulnerability. Among them is Akpan Ekpo, a professor of economics and public policy, who expressed unease about the country’s exposure to foreign debt.
Ekpo noted that Nigeria’s debt profile has been rising steadily and warned that the situation could become unsustainable if not carefully managed. He questioned whether sufficient analysis had been conducted to determine the project’s long-term financial viability, particularly in relation to expected revenue streams such as tolls.
“The economy is becoming too exposed to external debt, and that is worrisome,” he said. “GDP does not repay debt—revenue does, and Nigeria’s revenue base remains fragile.” He further highlighted the country’s heavy dependence on oil revenue, which is subject to global price fluctuations and therefore cannot be relied upon as a stable source for debt servicing.
He also raised concerns about whether the anticipated returns from the highway project would be sufficient to offset the cost of the loan within a reasonable timeframe. Without a clear and realistic repayment plan, he warned, the project could become an additional financial burden rather than a catalyst for growth.
Ekpo advocated for alternative financing models that would reduce reliance on external debt while promoting domestic economic participation. He suggested mechanisms such as Public-Private Partnerships, infrastructure concessions, and Sukuk bonds as viable options for funding large-scale projects. According to him, such approaches would not only ease pressure on government finances but also stimulate local investment and job creation.
“There are other ways to fund infrastructure beyond borrowing,” he noted. “We should focus on retaining financing within the domestic economy to strengthen local capacity and generate employment.”
In contrast, other experts have defended the government’s decision to seek external financing for the project. Ayo Teriba, Chief Executive Officer of Economic Associates, argued that borrowing for capital-intensive infrastructure projects is both necessary and economically justifiable, particularly when such projects are expected to yield long-term benefits.
Teriba maintained that the superhighway represents a strategic investment that will outlast the duration of the loan and generate economic opportunities capable of supporting repayment. He pointed out that the interest rate attached to the loan—reported to be around 5.3 percent—is relatively favourable compared to higher domestic borrowing rates.
“When a loan is used to finance a capital project with a lifespan that exceeds the repayment period, it creates value rather than burden,” he explained. “The infrastructure will open up economic opportunities, and the income generated can be used to service the debt.”
He further argued that such investments should be viewed not as liabilities but as assets that contribute to national development and future growth. However, Teriba also expressed concern over the limited involvement of Nigerian financial institutions in funding such projects.
He noted that significant liquidity exists within the domestic banking system, particularly in the form of cash reserve requirements held by the central bank, which currently earn little or no interest. According to him, reforms in financial policy could unlock these funds for infrastructure development, allowing local banks to participate more actively in financing national projects.
“There is substantial capital within the domestic economy that can be mobilised if the right structures are put in place,” he said, calling for a review of existing monetary policies to enable greater private sector involvement.
As the debate continues, the Senate has referred the loan request to its Committee on Local and Foreign Debts for detailed examination. Lawmakers are expected to evaluate the terms of the loan, the projected economic impact of the highway, and the broader implications for Nigeria’s fiscal health before making a final decision.
The Sokoto–Badagry Super Highway remains one of the most ambitious infrastructure projects proposed in recent years, with the potential to transform transportation and commerce across multiple regions. However, the controversy surrounding its financing underscores a broader national conversation about the balance between development needs and fiscal responsibility.
With competing perspectives from political leaders and economic experts, the outcome of the Senate’s deliberation will likely shape not only the future of the project but also the direction of Nigeria’s borrowing strategy in the years ahead.
