Former Vice President Atiku Abubakar has fired a broadside at President Tinubu over his request for Senate approval of a fresh $516 million external loan, warning that Nigeria must not “borrow blindly” in the name of development.
Recall that President Bola Tinubu had written to the Senate, seeking approval to borrow a fresh $516, 333,07 loan.
In a letter to the President of the Senate, Senator Godswill Akpabio, which was read, yesterday, during plenary, the syndicated loan will 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 and it is aimed at financing the already approved borrowing plan for the Sokoto-Badagry 1,000 Super Higway.
According to the President, FG will provide counterpart funding in the sum of N265,542,689,569, covering land acquisition, compensation, and ancillary infrastructure.
Tinubu, in the letter, explained that the project is designed to open up Nigeria’s North West- South West economic corridor through the construction of an approximately 1,000-kilometre high-capacity carriageway, linking Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and Lagos states, stretching from Illela to Badagry.
President Tinubu in the letter, is asking for an expeditious passage.
In his remarks, Akpabio, who noted that it is better to borrow for projects and for critical infrastructure, aligned with the position, describing the project as a major economic game changer capable of saving lives and boosting national productivity.
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He emphasised that borrowing for critical infrastructure is justified, particularly where such investments yield long-term economic benefits and can facilitate repayment through generated value.
The President of the Senate subsequently urged the committee to expedite its review to enable timely consideration and approval.
Following presentation of the President’s request, the letter was referred to the Senate Committee on Local and Foreign Debts, with a directive to report back within one week.
In a statement on Wednesday by his Senior Special Assistant on Public Communication, Phrank Shaibu, Atiku acknowledged the necessity of infrastructure development, particularly a project connecting the North-West to the South West but drew a sharp distinction between noble intentions and reckless fiscal decisions.
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“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.
“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.
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“Nigerians have not forgotten the serious questions surrounding the opaque award process of the Lagos-Calabar Coastal Highway, where due process, competitive bidding, and value-for-money considerations were widely called into question. We must not replicate such a troubling precedent.
“Every kobo borrowed in the name of the Nigerian people must be matched with transparency, accountability, and strict adherence to procurement laws.
“Nigeria must build, but Nigeria must not borrow blindly. Progress anchored on opacity and debt accumulation is neither progress nor leadership, it is postponement of crisis,” he said.
