Former Vice President Atiku Abubakar has criticized President Bola Tinubu’s request for a $516 million loan from Deutsche Bank, calling it fiscally reckless and lacking transparency.
The loan is meant to fund the Sokoto-Badagry Superhighway, a major infrastructure project linking Nigeria’s North-West to its South-West.
However, Atiku argues that good intentions don’t justify poor borrowing decisions, especially when millions of Nigerians are already feeling the strain of a weakening naira.
What the Loan is For
President Tinubu’s loan request, addressed to the Senate, seeks approval for $516,333,070 to build sections of the 1,000-kilometre Sokoto-Badagry Superhighway.
The project will connect Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states. Senate President Godswill Akpabio has described it as a vital project to boost productivity and save lives, but Atiku questions the cost of borrowing for such initiatives.
Atiku’s Main Concern: Build Responsibly
Atiku recognizes the importance of infrastructure development but stresses that borrowing should be done responsibly. He advocates for fiscal discipline and transparency in awarding contracts. He raised concerns about the project being awarded to Hitech Construction Company without a competitive bidding process, comparing it to the controversial Lagos-Calabar Coastal Highway project, which raised questions about cronyism and lack of transparency.
Nigeria’s Debt Situation
Nigeria’s total debt stood at N159.28 trillion (about $110.97 billion) in Q1 2026. Against this backdrop, borrowing an additional $516 million raises alarms. Debt service costs are already consuming a large portion of government revenue, which experts warn could lead to long-term financial instability.
Lessons from the Lagos-Calabar Coastal Highway
Atiku’s criticism also draws attention to the Lagos-Calabar Coastal Highway, which became a controversial project due to concerns over opaque contracting processes.
He questions whether the Sokoto-Badagry Superhighway could suffer the same fate, warning against using public funds for projects that benefit a few rather than the wider public.
Frequently Asked Questions
What is the $516 million loan for?
It is to fund sections of the Sokoto-Badagry Superhighway, a 1,000-kilometre road project connecting Nigeria’s North-West to the South-West.
Why is Atiku against the loan?
Atiku supports infrastructure development but opposes the lack of transparency in borrowing terms and the competitive bidding process for contracts.
What is Nigeria’s total debt?
Nigeria’s public debt as of Q1 2026 stands at N159.28 trillion (~$110.97 billion).
Has the Senate approved the loan?
No, the Senate is reviewing the loan request and will report back within one week as of April 24, 2026.
What is the Sokoto-Badagry Superhighway?
It’s a 1,000-kilometre road project connecting Sokoto to Badagry, crossing through six other states, aimed at improving travel and boosting economic activity.
What Responsible Borrowing Looks Like
Atiku emphasizes that borrowing for infrastructure should be transparent, with clear terms, independent assessments, and competitive bidding. Responsible borrowing means a sustainable plan for repayment, not relying on unrealistic revenue projections.
Oluwatimileyin Olawale
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