Former Vice President Atiku Abubakar has criticised President Bola Tinubu over his request for Senate approval of a fresh $516 million external loan, warning that Nigeria must not “borrow blindly” under the guise of development.
President Tinubu had written to the Senate seeking approval for a $516,333,07 loan to support the already approved borrowing plan for the Sokoto–Badagry 1,000-kilometre super highway.
The proposal, addressed to Senate President Godswill Akpabio and read during plenary, indicated that the syndicated loan would be secured through Deutsche Bank AG, with backing from the Islamic Corporation for the Insurance of Investment and Export Credit.
The federal government is also expected to provide counterpart funding of N265,542,689,569 to cover land acquisition, compensation, and related infrastructure.
Tinubu explained that the project aims to link the North-West and South-West economic corridor, connecting states including Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos, stretching from Illela to Badagry.
He urged lawmakers to expedite consideration and approval of the request.
Speaking on the proposal, Akpabio supported the move, stating that borrowing for critical infrastructure is justified, especially when such projects can boost productivity and generate long-term economic value.
He described the highway as a major project capable of enhancing economic growth and saving lives, and directed the relevant committee to fast-track its review.
The Senate subsequently referred the request to the Committee on Local and Foreign Debts, with instructions to report back within one week.
Reacting in a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku acknowledged the importance of infrastructure development but cautioned against what he described as reckless fiscal decisions.
“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.
“What Nigerians expect is not just ambitious projects, but responsible financing. Development must not become a euphemism for deepening debt traps that generations yet unborn will be forced to repay.
“Nigerians have not forgotten the serious questions surrounding the opaque award process of the Lagos-Calabar Coastal Highway, where due process, competitive bidding, and value-for-money considerations were widely called into question. We must not replicate such a troubling precedent.
“Every kobo borrowed in the name of the Nigerian people must be matched with transparency, accountability, and strict adherence to procurement laws.
“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,” he said.