Former Vice President Atiku Abubakar and several economists have raised concerns over President Bola Tinubu’s request for Senate approval of a $516 million external loan to fund parts of the Sokoto–Badagry Super Highway.
The president, in a letter read during plenary by Senate President Godswill Akpabio, sought approval for the loan, expected from Deutsche Bank, to finance Sections 1, 1A, and 1B of the 1,000-kilometre road project linking Sokoto to Lagos.
Atiku acknowledged the importance of the highway but warned against increasing Nigeria’s debt burden, citing concerns over transparency, repayment plans, and long-term sustainability. He urged the National Assembly to subject the request to thorough scrutiny, cautioning against what he described as “borrowing blindly.”
Economists also expressed divided opinions. Professor Akpan Ekpo warned that Nigeria’s rising external debt and weak revenue base could make repayment difficult, stressing that government income—not GDP—is what services debt. He advised exploring alternatives such as public-private partnerships and domestic financing options.
On the other hand, Ayo Teriba supported the move, arguing that borrowing for infrastructure is justified when it creates long-term economic value. He noted that the highway could boost economic activity and generate revenue to offset the loan, especially given its relatively lower interest rate.
The proposed superhighway is a flagship project aimed at improving connectivity across multiple states and driving economic integration. The Senate has since referred the loan request to its Committee on Local and Foreign Debts for further consideration.
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