Nigerians have expressed mixed reactions following President Bola Tinubu’s request for a $516.3 million external loan to finance sections of the proposed Sokoto–Badagry Superhighway, a flagship infrastructure project under his administration’s Renewed Hope Agenda.
The request, transmitted to the Senate on April 23 and read during plenary by Senate President Godswill Akpabio, seeks approval for funding expected to be sourced from Deutsche Bank.
According to the President, the loan will finance Sections 1, 1A and 1B of the over 1,000-kilometre highway designed to link Illela in Sokoto State to Badagry in Lagos, connecting major commercial and agricultural hubs across Nigeria’s North-West and South-West corridors.
Tinubu explained that the project is part of a borrowing framework already approved by the National Assembly and is intended to stimulate economic activity, enhance connectivity, and reduce logistics costs.
“It will improve road safety, strengthen economic integration, facilitate trade, boost food security, and link production zones to markets and ports,” the President stated, urging lawmakers to expedite approval.
Public backlash, expert caution
ALSO READ Sanusi blasts Nigeria’s borrowing spree despite subsidy gains, demands fiscal accountability
The proposal has, however, triggered widespread debate, with concerns over Nigeria’s growing debt burden dominating public discourse.
Former Vice President Atiku Abubakar criticised the move, questioning the government’s fiscal discipline.
“At a time when Nigeria is already groaning under unsustainable debt, resorting to another foreign loan without transparent terms or a clear repayment framework raises serious concerns,” he said through his aide.
Similarly, Seun Onigbinde, Chief Executive Officer of BudgIT, warned that poorly structured loans could worsen fiscal risks.
“A poorly taken loan is even more dangerous than wasting public revenue,” he said, while also questioning the level of scrutiny applied by the Senate.
He added that weak procurement processes could erode the potential benefits of such large-scale borrowing.
Divided voices on social media
Reactions on X (formerly Twitter) reflected a divided public.
Some users argued that the loan aligns with an already approved borrowing plan and could yield economic returns if properly executed. Others questioned the government’s track record on past loans and infrastructure delivery.
Concerns were also raised about transparency, particularly the decision to source financing from a commercial lender rather than multilateral institutions such as the World Bank, which typically impose stricter oversight conditions.
One user argued that such a shift could limit transparency and accountability in loan terms and execution.
However, supporters of the move insisted that borrowing for capital projects like highways is justified if it drives long-term growth and improves national productivity.
Political pushback, Senate defence
The African Democratic Congress (ADC) also criticised the request, describing it as part of a broader pattern of excessive borrowing with limited regard for sustainability.
“This reflects an administration that has made borrowing its default economic strategy,” the party said.
In contrast, Akpabio defended the proposal, maintaining that debt used for infrastructure can enhance economic capacity and repayment potential.
“It is better to borrow for infrastructure that can ultimately repay the loan,” he stated during plenary.
Rising debt pressures
Nigeria’s debt profile remains a central concern. Data from the Debt Management Office shows that total debt service rose to about N16 trillion in 2025—up 22.9 percent from N13.02 trillion in 2024.
Domestic debt servicing accounted for the bulk of this figure, with Federal Government bonds contributing roughly N5.35 trillion, or about 65 percent of total domestic interest payments.
On the external front, debt service stood at $5.15 billion in 2025, representing 46.2 percent of total obligations—highlighting sustained pressure on Nigeria’s fiscal position despite ongoing reforms.
As debate continues, the proposed Sokoto–Badagry Superhighway has become a flashpoint in the broader conversation about Nigeria’s borrowing strategy, infrastructure priorities, and long-term economic sustainability.
