Former Vice President Atiku Abubakar has criticised President Bola Tinubu’s request for Senate approval of a fresh $516m external loan, warning against what he described as reckless borrowing.
Tinubu had written to the Senate seeking approval to secure a $516,333,307 syndicated loan to finance part of the Sokoto–Badagry Super Highway project.
The request, read during plenary by the President of the Senate, Godswill Akpabio, indicated that the facility would be arranged through Deutsche Bank AG, with support from the Islamic Corporation for the Insurance of Investment and Export Credit.
According to the President, the Federal Government would also provide counterpart funding of over N265bn to cover land acquisition, compensation and related infrastructure.
Tinubu explained that the project is designed to boost economic activities by linking the North-West and South-West through a 1,000-kilometre carriageway connecting Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun and Lagos states.
He urged the Senate to grant speedy approval to enable implementation.
Akpabio, in his remarks, supported the move, noting that borrowing for critical infrastructure could be justified if it delivers long-term economic benefits and enhances productivity.
The Senate thereafter referred the request to its Committee on Local and Foreign Debts for further legislative scrutiny, directing it to report back within one week.
However, Atiku, in a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, cautioned the government against accumulating debt without clear repayment plans.
While acknowledging the importance of infrastructure development, the former vice president stressed the need for transparency, accountability and prudent financial management.
He expressed concern over the country’s rising debt profile, warning that additional borrowing without clear terms and cost-benefit analysis could worsen the situation.
Atiku also raised issues about past project executions, urging the government to ensure due process, competitive bidding and value for money in all public projects.
He maintained that while development is necessary, it should not come at the cost of plunging the country into unsustainable debt.
The former vice president added that all borrowings must be handled with transparency and in strict compliance with procurement laws to safeguard the nation’s future.
