Fresh $516m Loan Debate in Nigeria: Atiku Challenges Tinubu Over Borrowing Strategy

Former Vice President Atiku Abubakar has strongly criticised President Bola Ahmed Tinubu over a proposed $516 million external loan, cautioning that the country must avoid what he described as careless borrowing under the guise of development.

According to a letter addressed to Senate President Godswill Akpabio and read during plenary, the Federal Government intends to secure the syndicated loan through Deutsche Bank AG. The facility will be backed by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit, a subsidiary of the Islamic Development Bank. The funding is designated for the already approved borrowing framework tied to the Sokoto–Badagry Super Highway project.

The Federal Government also plans to contribute counterpart funding totaling ₦265,542,689,569. This allocation will cover land acquisition, compensation for affected communities, and additional supporting infrastructure required for the project’s execution.

President Tinubu explained that the initiative is designed to strengthen the economic connection between Nigeria’s North-West and South-West regions. The proposed highway, stretching roughly 1,000 kilometres from Illela to Badagry, is expected to pass through Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states. The administration argues that the project will improve trade routes, enhance mobility, and unlock economic potential across multiple regions.

The President also urged lawmakers to fast-track approval of the loan request. Supporting this position, Senate President Akpabio noted that borrowing for strategic infrastructure can be justified when it delivers long-term economic returns. He described the highway as a transformative initiative capable of boosting productivity and improving safety, adding that well-structured investments can generate value sufficient to offset borrowing costs over time.

Following the presentation, the Senate referred the request to its Committee on Local and Foreign Debts, directing the panel to review and report back within one week for further legislative consideration.

Reacting through his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku Abubakar acknowledged the importance of infrastructure development, particularly projects linking key regions of the country. However, he stressed that good intentions must not overshadow responsible financial decision-making.

He warned that Nigeria’s current debt profile already places significant pressure on the economy, making additional borrowing a sensitive issue. According to him, any new loan arrangement must be supported by clear terms, a transparent cost-benefit evaluation, and a credible repayment strategy.

Atiku further argued that Nigerians expect more than ambitious announcements—they demand fiscal discipline and accountability. He cautioned that unchecked borrowing risks creating long-term financial burdens that future generations will inherit.

Referencing past concerns around the Lagos–Calabar Coastal Highway project, he pointed to allegations of opacity in contract awards, including questions about due process and value for money. He urged the government to avoid repeating such controversies by ensuring strict compliance with procurement regulations.

He concluded by emphasising that while national development is essential, it must not come at the expense of transparency. In his view, progress driven by unclear processes and mounting debt does not represent genuine advancement but rather delays deeper economic challenges.