Atiku, economists raise concerns over Tinubu’s $516m loan request

Former Vice President Atiku Abubakar and several economists have expressed concerns over President Bola Tinubu’s request for Senate approval of a $516 million external loan to fund sections of the Sokoto–Badagry Super Highway.

 

Tinubu had written to the Senate seeking approval for a $516,333,070 facility from Deutsche Bank to finance Sections 1, 1A and 1B of the 1,000-kilometre highway project, a key infrastructure initiative linking Sokoto to Lagos.

 

Reacting, Atiku, in a statement signed by his Senior Special Assistant on Public Communication, Phrank Shaibu, acknowledged the importance of the project but cautioned against rising debt levels and lack of transparency in borrowing.

 

“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.

 

He urged the National Assembly to subject the request to rigorous scrutiny, warning that “Nigeria must build, but must not borrow blindly.”

 

Professor of Economics and Public Policy at the University of Uyo, Akpan Ekpo, has also warned that Nigeria’s growing reliance on external borrowing poses risks to fiscal sustainability.

 

“The debt profile is rising alarmingly… GDP does not pay debt, revenue pays debt, and our revenue profile is shaky,” he said, urging the government to explore alternatives such as Public-Private Partnerships and concessions.

 

However, Chief Executive Officer of Economic Associates, Ayo Teriba, defended the move, describing it as appropriate for long-term capital projects.

 

“The superhighway will open up income opportunities, and repayment will come from the value it creates,” he said, noting that the reported interest rate of 5.3 per cent is lower than previous borrowing costs.

 

Teriba, however, called for greater inclusion of local financial institutions, criticising the exclusion of Nigerian banks from such funding opportunities.

 

The proposed highway is expected to enhance connectivity, reduce travel time, and boost economic activities across the Sokoto–Badagry corridor.

 

The Senate has since referred the loan request to its Committee on Local and Foreign Debts for further legislative consideration.