Sokoto–Badagry highway loan sparks debate over pace of federal borrowings

The Federal Government's recent approval of a $516.33 million loan from Deutsche Bank AG for the 120km Sokoto–Badagry Superhighway has drawn mixed reactions from Nigerians. This follows a $6 million external borrowing approved the previous month to support the 2026 national budget, infrastructure projects, and debt refinancing. Critics have questioned the speed of loan approvals and the lack of visible economic returns from past borrowings.

Sunday Azubuike, a businessman, warned that multiple loans increase debt servicing costs and economic risks. He urged the government to reduce borrowing and consider public-private partnerships instead. Absolome Jimba, another businessman, said loans should boost internally generated revenue and infrastructure, but saw no evidence of such direction. He pointed to poor disbursement of capital budgets and negligible impact from fuel subsidy removal as red flags.

Aisha Abdullahi, a public servant, stressed that the issue was not borrowing but how funds were used. She noted that living conditions remain difficult despite ongoing loans. Dennis Lawson, a banker, said rising debt could burden future generations and called for tangible outcomes in security, healthcare, and education. Trader Ochanya Ako said citizens should see better roads, electricity, and living standards if borrowing continues.

Economist Opeyemi Alabi described the frequency of loan approvals as concerning, emphasizing that debt servicing costs relative to revenue are Nigeria's core fiscal challenge. He advocated for improved tax collection and reduced leakages over continued borrowing. Financial analyst Segun Ibikunle said infrastructure loans must generate economic activity that justifies the debt.

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