New $516m debt sparks criticism as Atiku urges Tinubu to curb extravagant spending spree

Former Vice President Atiku Abubakar has criticized President Tinubu's request for Senate approval of a $516 million external loan, cautioning that Nigeria should not borrow recklessly in the name of development.

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President Tinubu had written to the Senate seeking approval for the loan, which will be used to finance the Sokoto-Badagry 1,000 Super Highway, with a syndicated loan secured through Deutsche Bank AG and supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit.

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The loan, totaling $516,333,07, will be used to construct a 1,000-kilometer high-capacity carriageway linking Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, stretching from Illela to Badagry.

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President Tinubu explained that the project aims to open up Nigeria's North West-South West economic corridor and will be supported by counterpart funding from the federal government in the sum of N265,542,689,569, covering land acquisition, compensation, and ancillary infrastructure.

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Senator Godswill Akpabio, the President of the Senate, noted that borrowing for critical infrastructure is justified, particularly when such investments yield long-term economic benefits and can facilitate repayment through generated value.

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Akpabio urged the Senate Committee on Local and Foreign Debts to expedite its review of the loan request to enable timely consideration and approval, describing the project as a major economic game changer capable of saving lives and boosting national productivity.

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The Senate Committee on Local and Foreign Debts was directed to report back within one week after reviewing the President's request, which was presented during plenary.

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Atiku Abubakar, through his Senior Special Assistant on Public Communication, Phrank Shaibu, acknowledged the necessity of infrastructure development but drew a distinction between noble intentions and reckless fiscal decisions.

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Atiku warned that Nigeria's already unsustainable debt burden raises questions about the prudence and accountability of taking on yet another foreign loan without transparent terms, clear cost-benefit analysis, and a credible repayment framework.

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He emphasized that Nigerians expect responsible financing and not just ambitious projects, warning that development should not become a euphemism for deepening debt traps that future generations will be forced to repay.

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Atiku referenced the opaque award process of the Lagos-Calabar Coastal Highway, where due process and competitive bidding were called into question, and cautioned against replicating such a precedent.

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He stressed that every loan taken in the name of the Nigerian people must be matched with transparency, accountability, and strict adherence to procurement laws, warning that Nigeria must not borrow blindly.