Nigeria’s debt pile just got heavier, and the timing couldn’t be more controversial. The World Bank is moving to loan Nigeria $1.25 billion even as opposition parties, engineers, and civil society groups question how previous billions for highways have been spent.
The $1.25bn Loan
The African Democratic Congress, ADC, has faulted the Federal Government’s move to seek another fresh $1.25 billion World Bank loan despite Nigeria’s debt profile hitting about N159.28 trillion. ADC’s National Publicity Secretary, Bolaji Abdullahi, accused the Tinubu administration of borrowing to “service old debts” while Nigerians face rising food prices, unemployment, and inflation. He described it as a “Ponzi economy”.
The party argues the National Assembly has become a “rubber stamp” for borrowing, with debt servicing consuming an “unsustainable portion of government revenue”.
The Highway Controversy
The loan push comes amid fresh scrutiny of Nigeria’s mega road projects
The $516m Sokoto-Badagry Highway Loan
President Tinubu asked parliament to approve a $516 million syndicated facility from Deutsche Bank for the first sections of a 1,000km highway linking Sokoto to Badagry, Lagos. The loan has a 9-year tenor with up to 3 years’ grace. Government says it will cut travel times, boost trade and food security.
The N1.2tn Lagos-Calabar Coastal Highway
The FG already secured an additional N1.2 trillion [$747 million] syndicated loan from Deutsche Bank for Phase 1, Section 1 of the 700km Lagos-Calabar Coastal Highway. But transparency experts are alarmed. Development expert Musa Ibrahim said the road will cost N4.93bn per kilometre and was awarded on a “counterpart-funding basis, not PPP”. About N1.06tn has been released for just 6% of the pilot phase.
“The rate federal government is borrowing is alarming without transparency in the spending,” Ibrahim warned. There are also ongoing litigations over demolished properties along the coast.
Former presidential candidate Chekwas Okorie said the process is “shrouded in secrecy. There was no open competitive bidding, and key details of the contracts remain undisclosed”. Engineer Martins Onovo added: “There was no competitive bidding, and in some cases, approvals did not precede contract awards”. Both linked the timing to 2027 election spending.
“Reject the Loan, Probe Missing Funds” – SERAP
Advocacy group SERAP has urged President Tinubu to reject a separate $1.08bn World Bank loan and instead investigate alleged missing public funds of over N233bn.
“The World Bank loan is neither necessary nor in the public interest, especially given the country’s crippling debt burden, and staggering amount of missing public funds from MDAs”.
Government’s Response: “Not Hidden Spending”
The Finance Ministry says claims of “hidden spending” are a misinterpretation of a World Bank report. Minister of State for Finance, Taiwo Oyedele, said FAAC deductions cited are “legitimate components of public finance” including statutory transfers, security, and refunds to MDAs. The government also told the World Bank it may not honor loans delayed beyond six months, saying “as a responsible borrower, Nigeria deserved timely consideration”.
Debt, Distrust, Development
Experts say Nigeria keeps borrowing for infrastructure, but citizens feel little impact. Prof. Adelaja Odukoya of UNILAG argued World Bank lending “sustains dependency rather than development,” calling Nigeria “an ATM for Western capital”.
Meanwhile, the World Bank itself has sanctioned Nigerian firms and individuals for corruption in bank-financed projects, noting corruption “diverts scarce resources” and “undermines public trust”.
$1.25 billion more in debt, billion-naira highways under a microscope, and millions of Nigerians asking the same question: Will this loan build roads, or just more debt?
