…Backs Tinubu’s loan request
By The9jaTREND
Nigeria’s rising debt burden may be far from slowing down as Senate President Godswill Akpabio has backed President Bola Ahmed Tinubu’s continued borrowing drive, defending fresh external loans as necessary for infrastructure development.
The latest development followed Tinubu’s request to the Senate for approval of a new $516.3 million external loan, a move that pushes the administration’s total borrowing requests to well over $30 billion since he assumed office in 2023.
The request, presented during Thursday’s plenary and read by Akpabio, is intended to finance sections of the proposed Sokoto–Badagry Superhighway, an ambitious 1,000-kilometre transport corridor expected to connect major commercial and economic zones from the North-West to the South-West of Nigeria.
According to details contained in the request, the loan facility is expected to be arranged through Deutsche Bank, with additional support from the Islamic Corporation for the Insurance of Investment and Export Credit to strengthen financing and risk coverage for the project.
The federal government has described the highway project as a major component of Tinubu’s Renewed Hope Agenda, arguing that it will improve trade routes, reduce transportation costs, and stimulate economic activities across several states.
However, economic analysts and fiscal observers say the growing dependence on borrowing reflects deeper structural problems, particularly weak revenue generation, declining purchasing power, and persistent budget deficits that continue to pressure public finances.
Since taking office, Tinubu has repeatedly approached both domestic and international lenders to finance government operations and capital projects. Estimates show that total borrowing requests under the administration have now crossed the $30 billion mark, in addition to more than N1 trillion in domestic borrowing proposals.
Akpabio, while addressing the matter, defended the borrowing strategy, insisting that taking loans for infrastructure remains preferable to allowing critical national projects to stall due to lack of funds.
“I commend Tinubu that in these difficult times when we don’t have money, it is better to borrow for projects and infrastructure so at the end of the day we can pay through the infrastructure,” Akpabio stated on the Senate floor.
Watch video here
His remarks have sparked fresh debate among Nigerians, especially as concerns continue to grow over the country’s debt sustainability and the increasing share of government revenue spent on debt servicing.
Critics argue that despite years of heavy borrowing, ordinary Nigerians have seen little improvement in economic conditions, while inflation, unemployment, and the rising cost of living continue to worsen.
Others warn that without stronger accountability and measurable returns from borrowed funds, Nigeria risks deepening its fiscal crisis and placing even heavier repayment burdens on future administrations and generations.
…Naijapunchnews