Nigeria’s rising debt profile is facing renewed scrutiny as the administration of President Bola Tinubu advances fresh borrowing plans, including funding for the ambitious Sokoto–Badagry highway project, a move that has intensified debate over the country’s fiscal direction.
According to data from the Debt Management Office and the National Bureau of Statistics, Nigeria’s public debt has grown significantly over the past decade. Under former President Muhammadu Buhari, debt rose from about ₦12.12 trillion in 2015 to over ₦87 trillion by May 2023, largely driven by infrastructure spending, oil revenue shocks, and central bank financing.
The upward trajectory has continued under the current administration, with total public debt climbing to roughly ₦121.67 trillion by early 2024. The Federal Government has also increased its 2026 borrowing plan to about ₦29.2 trillion, with major infrastructure projects, most notably the Sokoto–Badagry highway featured prominently in the funding pipeline.
The proposed highway, designed to link the North-West to the South-West corridor, is being positioned as a transformative economic route that could boost trade, logistics, and regional integration. However, its inclusion in the borrowing plan has sparked fresh concerns about sustainability, with critics questioning whether Nigeria can afford such large-scale debt-funded projects at a time of mounting fiscal pressure.
Among the critics is former Central Bank Governor Sanusi Lamido Sanusi, who has repeatedly raised concerns about continued borrowing despite the removal of petrol subsidies in 2023—an initiative expected to free up billions of dollars annually for development.
Government officials argue that the rising debt figures must be viewed in context. They note that exchange rate unification significantly increased the naira value of existing external loans, contributing to the apparent surge in total debt.
The administration maintains that borrowed funds are being strategically deployed across key sectors, including infrastructure, agriculture, and social welfare. Projects such as the Sokoto–Badagry highway, alongside other national road and industrial initiatives, are being framed as long-term investments aimed at unlocking economic growth.
Global financial institutions, including the World Bank and the International Monetary Fund, have acknowledged Nigeria’s reform efforts and forecast moderate economic recovery, lending cautious support to the government’s strategy.
Despite this, analysts warn of a growing “subsidy paradox.” While the removal of fuel subsidies was meant to ease fiscal strain, a large portion of the savings is now being absorbed by debt servicing costs, which consume a substantial share of government revenue.
For many Nigerians dealing with high inflation and rising living costs, the key concern remains whether these borrowings—particularly for flagship projects like the Sokoto–Badagry highway—will translate into tangible improvements in daily life.
As the 2027 election cycle approaches, the question of whether Nigeria’s expanding debt is delivering real economic value is expected to dominate public discourse, placing the government under increasing pressure to justify its borrowing strategy with visible results.
