Loan pushes funding past ₦1.2 trillion as public debt concerns mount
The administration of President Bola Ahmed Tinubu has secured a fresh $747 million (approximately ₦1.2 trillion) loan to fund the much-criticised Lagos-Calabar Coastal Highway project, drawing renewed public scrutiny over the project’s cost, transparency, and political ties.
The loan, announced Tuesday by the Ministry of Finance, comes amid ongoing controversy surrounding the multitrillion-naira highway awarded earlier this year to Hitech Construction Company, a firm linked to billionaire Gilbert Chagoury—a longtime associate of President Tinubu. The project, which is expected to cost over ₦15 trillion, has been described by critics as a politically motivated infrastructure deal lacking transparency.
According to Mohammed Manga, spokesperson for the Ministry of Finance, the new loan agreement reflects “strong global investor confidence in the country’s reform trajectory.” The loan is being arranged by Deutsche Bank, with financing support from First Abu Dhabi Bank, Afrexim, ADEX, EBID, Nexent Bank, and Zenith Bank under an EPC+F (Engineering, Procurement, Construction + Financing) model.
No Competitive Bidding, Critics Say
The highway contract, critics point out, was awarded without a competitive open bidding process. Civil society groups and opposition figures have labelled the project a political reward rather than a public necessity. Notably, investigative journalist David Hundeyin previously described the project as a “fraud scheme” and raised questions over Chagoury’s criminal history and influence in Nigerian politics.
Despite the backlash, Minister of Works Dave Umahi has defended the award, citing Hitech’s experience with concrete road construction, including the reconstruction of the Oworonshoki–Apapa Road. Umahi maintained that “procurement followed due process.”
Mounting National Debt
Analysts have expressed concern that the Tinubu administration’s reliance on external loans for large-scale projects is unsustainable. Nigeria’s public debt is approaching ₦100 trillion, prompting fears that such massive borrowing could worsen the country’s economic situation.
“This is not just about infrastructure,” said a Lagos-based economic analyst. “It’s about the unchecked accumulation of debt and how national resources are being channeled. There's a growing perception that this project serves elite interests more than national ones.”
The fresh $747 million facility adds to Nigeria’s growing external obligations, fueling calls for greater transparency and accountability in how such funds are procured and utilized.
With criticism mounting and economic conditions worsening for ordinary Nigerians, the Lagos-Calabar highway continues to spark debate—not only about its financial implications but also its political undertones.
