President Bola Ahmed Tinubu has requested the Nigerian Senate to approve a fresh external loan of $516.3 million to fund the construction of Sokoto‒Badagry Super Highway, a flagship project under his administration’s infrastructure drive.
The request, however, has ignited fierce criticism from opposition figures and political groups, who warn that the nation is plunging deeper into an unsustainable debt crisis.
The loan request, detailed in a letter addressed to the Senate President Godswill Akpabio and read during a plenary session on April 23, 2026, seeks approval for a syndicated financing
facility from Deutsche Bank.
The funds are earmarked for the execution of Sokoto-Badagry Sections 1, 1A, and 1B of the 1,000km highway, that is designed to link Nigeria’s North-West to the South-West corridor, stretching from Illela in Sokoto State to Badagry in Lagos State.
According to the President, the financing structure includes partial risk guarantee from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC), with Federal Government providing counterpart funding of ₦265.5 billion for land acquisition, compensation, and related infrastructure.
The loan is structured with a nine-year
tenure, including a grace period of up to three years, and carries an interest rate
benchmarked at the Chicago Mercantile Exchange (CME) SOFR plus 5.3 percent per annum.
While the administration touts the project as a major economic game-changer expected to enhance connectivity, reduce travel time, and facilitate trade, the move has drawn sharp rebukes.
The African Democratic Congress (ADC) Legislators’ Forum issued a strongly
worded statement condemning the request, describing it as emblematic of an administration that made “reckless borrowing its default economic policy”.
“Nigeria is already weighed down by a crushing debt burden, with debt servicing swallowing a staggering proportion of national revenue.
“Yet, rather than confronting this reality with discipline and reform, the Tinubu administration continues to plunge the country deeper into what can only be described as a looming debt catastrophe,” the ADC statement read.
The ADC further questioned the timing of the request, noting its proximity to a major general election cycle, and urged the National Assembly not to act as a “rubber stamp”.
They demanded full disclosure of the project’s financial details, procurement processes, and a credible repayment plan.
Former Vice President Atiku Abubakar also voiced strong opposition, warning that Nigeria must not “borrow blindly” in the name of development.
In a statement released by his Spokesman, Phrank Shaibu, the former Vice President acknowledged the necessity of infrastructure development but criticized the lack of transparent terms and clear cost-benefit analysis.
“At a time 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,” Atiku stated.
Despite the mounting criticism, Senate President, Godswill Akpabio defended the borrowing, arguing that national development cannot stall due to revenue shortages.
He.emphasized that borrowing for critical infrastructure is justified when such investments yield long-term economic benefits.
The request has been referred to the Senate Committee on Local and Foreign Debts, with a directive to report back within one week.
As the Senate deliberates on the $516 million request, the debate underscores a critical crossroads for Nigeria: balancing the urgent need for the country’s infrastructure development against the perilous risks of mounting national debt.