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Tag: Sokoto–Badagry Superhighway

  • “Borrowing Is Not a Disease” — Tinubu Defends Rising Debt Amid Fresh Loan Plans

    President Bola Ahmed Tinubu has defended Nigeria’s growing debt profile, saying borrowing is a necessary tool for development and should not be seen as a negative. He made the remarks on Tuesday at the Presidential Villa in Abuja during a meeting with Plateau State Governor Caleb Mutfwang and other stakeholders.

    His comments come amid renewed scrutiny over the country’s increasing reliance on loans.

    Tinubu Insists Borrowing Key to Development Goals

    The President said the focus should be on how borrowed funds are used and repaid, not the act of borrowing itself. He maintained that strategic financing remains essential for infrastructure growth and economic expansion.

    “If we have to borrow money, we will, because borrowing is not leprosy; we just have to work hard to be able to repay it,” he said.

    Fresh Loans Linked to Major Infrastructure Push

    The defence follows the National Assembly’s approval of a $516.3 million loan for the Sokoto–Badagry superhighway project. The planned 1,000-kilometre corridor is expected to link key states across the North-West and South-West.

    Government officials say the project will improve connectivity, ease movement, and unlock economic opportunities along the route.

    Nigeria’s Debt Profile Continues to Climb

    Concerns have grown over Nigeria’s rising debt burden, with figures from the Debt Management Office showing total public debt reached about ₦159.28 trillion as of December 2025. The increase has been driven by fresh borrowing and exchange rate pressures.

    If additional loan requests exceeding $6 billion are approved, projections suggest the country’s total debt could approach ₦195 trillion.

    Criticism Mounts Over Borrowing Strategy

    The administration has faced criticism from opposition figures, including former Vice President Atiku Abubakar, who questioned the pace and transparency of new borrowing. He warned that excessive debt without clear repayment plans could pose long-term risks.

    Critics have called for stronger accountability, detailed cost-benefit analysis, and strict adherence to procurement processes.

    President Calls for Shift in Public Narrative

    Tinubu argued that borrowing should be viewed within the context of economic productivity and long-term growth. He said many advanced economies rely on debt financing to achieve major development milestones.

    The President added that his administration is focused on building infrastructure and strengthening the economy to ensure debts are sustainably managed.

  • Reps Approve $516m Deutsche Bank Loan for Sokoto–Badagry Superhighway Amid Oversight Conditions

     

    The House of Representatives has approved a $516.3 million syndicated loan from Deutsche Bank AG to finance Section 1 (Phase 1A and 1B) of the Sokoto–Badagry Superhighway project. The approval was reached on Tuesday after lawmakers adopted the report of the House Committee on Aids, Loans and Debt Management during plenary in Abuja. The decision moves forward one of Nigeria’s most ambitious road infrastructure plans linking the northern and southern regions.

    Committee Pushes Strategic Economic Justification

    Presenting the report, Committee Chairman Abubakar Hassan Nalaraba urged lawmakers to support the financing request for the 120-kilometre segment of the project. He stressed that the highway remains central to improving national connectivity and boosting economic integration across regions.

    The motion for consideration was moved by Abdullahi El-Rashid of Dukku/Nafada Federal Constituency in Gombe State and seconded by Bello Isah Ambarura of Illela/Gwadabawa Federal Constituency in Sokoto State. Lawmakers described the project as critical to long-term infrastructure development and trade expansion.

    Clause-by-Clause Approval in Committee of Supply

    The House later dissolved into the Committee of Supply, where the loan proposal was reviewed clause-by-clause before final adoption. Lawmakers approved all five recommendations attached to the request, including its inclusion in the Federal Government’s rolling borrowing plan.

    They also endorsed the financing structure, which includes a partial guarantee by the Islamic Corporation for the Insurance of Investment and Export Credit. The facility carries a nine-year repayment tenor with a moratorium of up to three years and an interest rate benchmarked at CME SOFR plus 5.35 per cent annually.

    Strict Oversight Measures Attached to Approval

    As part of accountability safeguards, the House mandated quarterly reporting from the Federal Ministry of Finance, the Debt Management Office, and the Federal Ministry of Works on project execution and fund utilisation. Lawmakers also insisted that all financing agreements must be submitted to the National Assembly within 30 days of financial close.

    The approval further included provisions for competitive procurement processes, independent technical and financial audits, and periodic assessment of project milestones to ensure transparency and value for money in implementation.

    Tinubu’s Request and National Corridor Vision

    The approval follows an earlier request by President Bola Ahmed Tinubu in April 2026, seeking legislative backing for the external loan facility. In his letter to the National Assembly, the President said the funds would support Sections 1, Phase 1A and 1B of the Sokoto–Badagry Superhighway.

    The project forms part of a broader 1,000-kilometre transport corridor designed to link Nigeria’s North-West to the South-West, passing through Sokoto, Kebbi, Niger, Kwara, Oyo, Ogun, and terminating in Badagry, Lagos State. The Federal Government says the corridor is expected to strengthen trade routes and improve regional connectivity.

    Oversight Pressure as Borrowing Plan Advances

    While the approval marks progress for the flagship infrastructure project, lawmakers have stressed strict monitoring to prevent misuse of funds and ensure timely delivery. Attention now shifts to implementation agencies and financial institutions as Nigeria deepens its external borrowing strategy for major capital projects.

    The outcome is expected to intensify public scrutiny over debt sustainability, infrastructure delivery, and transparency in the execution of large-scale federal projects.