Former Vice-President Atiku Abubakar has criticised President Bola Tinubu over the federal government’s decision to secure a $516 million foreign loan for parts of the Sokoto–Badagry superhighway project, describing the move as fiscally imprudent.
The president had approached the National Assembly with a request to approve a $516,333,007 loan facility to finance segments of the ambitious road project. The proposal, conveyed in a letter to Senate President Godswill Akpabio and read during plenary, stated that the funds would be obtained through a syndicated arrangement led by Deutsche Bank.
According to the request, the loan will cover sections 1, 1A, and 1B of the highway—spanning roughly 120 kilometres—and has now received legislative approval after being incorporated into the federal government’s borrowing plan.
He also urged lawmakers to incorporate the proposed borrowing into the federal government’s existing borrowing plan already approved by the legislature.
Describing the project as a major component of his administration’s “Renewed Hope” agenda, Tinubu said the Sokoto-Badagry corridor is designed to connect economic hubs across the north-west and south-west through a nearly 1,000-kilometre highway stretching from Illela to Badagry, passing through states including Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos.
“The proposed financing arrangement comprises a syndicated loan to be secured through Deutsche Bank AG, supported by a partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), the insurance arm of the Islamic Development Bank,” the letter reads.
The president disclosed that the federal government will provide counterpart funding of N265,542,689,569 to cover land acquisition, compensation, and other related infrastructure.
He added that the loan has a tenure of nine years, including a grace period of up to three years, with interest capped at the Chicago Mercantile Exchange SOFR plus 5.3 per cent annually.
Reacting through his media aide, Phrank Shaibu, Atiku acknowledged the strategic importance of infrastructure linking the north-west and south-west regions but warned against what he termed poor financial judgment.
He said while such projects are “necessary and desirable,” “noble intentions cannot excuse reckless fiscal choices.”
The former vice-president expressed deep concern about Nigeria’s growing debt burden, arguing that additional borrowing—especially without full disclosure of terms—raises serious issues about accountability.
“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,” he said.
Atiku further cautioned against politicising the issue, insisting that development must benefit all Nigerians while remaining financially sustainable.
“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,” he said.
He also questioned the decision to award the contract to Hitech Construction Limited without an open and competitive bidding process, drawing parallels with past controversies.
“Nigerians have not forgotten the controversy surrounding the Lagos-Calabar Coastal Highway, where due process and competitive bidding were widely questioned,” he said.
“It is therefore deeply troubling that a similar opaque approach appears to be playing out again, this time funded by borrowed money.”
Atiku went on to condemn what he described as a pattern of awarding public contracts to connected individuals, warning that such practices erode trust in governance.
“What manner of leadership takes loans in the name of the Nigerian people, only to channel those resources into contracts awarded without transparency to associates and insiders? This is not governance — it is a betrayal of public trust,” the statement reads.
“Public infrastructure cannot become a private bazaar for cronies and connected interests. Every kobo borrowed in the name of the Nigerian people must be matched with transparency, accountability, and strict adherence to procurement laws.”
Despite his criticism, the former vice-president urged lawmakers to carry out thorough oversight to ensure the loan terms serve the country’s best interests and that the project delivers tangible economic returns.
“Nigeria must build, but Nigeria must not borrow blindly. Progress anchored on opacity and debt accumulation is neither progress nor leadership; it is a postponement of crisis,” he added.
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