Nigerians react as Tinubu seeks $516 million loan for Sokoto-Badagry highway

Nigerians have taken to social media and public platforms to react to President Bola Tinubu’s request for a $516,333,070 external loan to finance the proposed Sokoto–Badagry Superhighway.

The President is seeking the approval of the Nigerian Senate for the facility, which is expected to be sourced from Deutsche Bank.

This was contained in a letter sent to the Senate on Thursday, April 23, and read during plenary by Senate President Godswill Akpabio.

According to the letter, the loan will be used to fund Sections 1, 1A, and 1B of the proposed 1,000-kilometre highway, designed to link Nigeria’s North-West to the South-West corridor.

In the letter, President Tinubu explained that the project is aimed at unlocking economic activities across multiple states by creating a high-capacity road network connecting Illela to Badagry through key commercial and agricultural hubs.

He also noted that the financing request is part of the Federal Government’s broader borrowing framework already approved by the National Assembly.

The President further stated that the project is expected to improve connectivity, reduce travel time, and strengthen economic integration across regions.

Tinubu urged lawmakers to fast-track consideration of the request.

The loan request has generated mixed reactions, with concerns over Nigeria’s rising debt profile dominating public discourse.

Former Vice President Atiku Abubakar, in a statement issued by his aide Phrank Shaibu, questioned the government’s fiscal discipline.

Speaking on Channels Television, Seun Onigbinde, CEO of BudgIT, warned about the risks associated with poorly structured borrowing.

Onigbinde also raised concerns about the level of legislative scrutiny applied to the request.

Reactions on X have also been varied. While some users noted that the loan forms part of an already approved borrowing plan, others questioned its economic viability.

The Refinery they borrowed to fix, how many of it is working now?? So road is the infrastructure they want to use to repay the loan they borrowing. They killing and dividing that's what that Akpabio has never disagree with any Loan request brought to his table.

Similarly, InsightbyTee questioned the tangible impact of government borrowing, asking whether citizens are seeing measurable benefits.

With the amount of borrowing under this administration, where are the tangible benefits for citizens?

However, not all reactions were critical. A user, Hassan Muhammad, defended the move, arguing that the President understands how to deploy debt effectively.

Another user, Abefe, supported the loan on the basis that it targets capital infrastructure, noting that the project could generate returns if properly executed.

The real "hidden cost" of this loan is the shift from multilateral lenders (like the World Bank) to private commercial banks (like Deutsche Bank), a move specifically designed to avoid the "annoying" transparency and human rights conditions that usually come with developmental…

The opposition African Democratic Congress also criticised the request, describing it as part of a pattern of excessive borrowing.

However, Senate President Akpabio defended the proposal during plenary, stating that borrowing for infrastructure can support economic growth and repayment capacity.

Nigeria’s rising debt profile has continued to attract scrutiny from analysts and stakeholders.

According to data from the Debt Management Office, total debt service rose to about N16 trillion in 2025, representing an increase of N2.98 trillion or 22.9% from the N13.02 trillion recorded in 2024.

A breakdown shows that Federal Government bonds accounted for about N5.35 trillion, representing roughly 65% of total domestic interest payments.

On the external side, debt service stood at $5.15 billion in 2025, accounting for 46.2% of total debt servicing. While domestic debt remains dominant, external obligations continue to pose significant fiscal pressures.