Financial expert Asiwaju Busari Shaamsuddeen Akande has urged the Federal Government to explore sovereign Sukuk and other non-interest financing instruments to fund infrastructure projects without further worsening Nigeria’s debt burden.
Akande made the recommendation in Calabar while assessing President Bola Tinubu’s proposed external borrowing plan, stressing the need for alternative funding sources and stronger accountability in the management of borrowed funds.
He argued that Nigeria’s capacity to repay loans should be assessed based on its actual revenue rather than its gross domestic product (GDP), warning that rising debt-servicing costs could limit government spending on essential public services and development.
The financial management specialist called for project-specific accounting and monitoring mechanisms to ensure that borrowed funds are used strictly for their intended purposes.
He recommended that infrastructure projects, including port modernisation and power transmission, should be assessed based on their potential to generate revenue, save foreign exchange or stimulate industrial production before borrowing decisions are made.
Akande also proposed asset-backed Sukuk financing, including leasing and construction-financing arrangements, as a means of attracting institutional investors to infrastructure development.
According to him, such instruments could link financing to tangible assets and project-related income while improving transparency and reducing the risk of borrowed funds being diverted to recurrent expenditure.
He, however, noted that borrowing was not inherently harmful, provided the economic benefits of the projects financed justified the associated costs.
The expert urged the Tinubu administration to clearly disclose the projects to be financed through the proposed loans, identify their expected beneficiaries and establish measurable targets for assessing their economic returns.
President Tinubu has requested the National Assembly’s approval for external borrowing facilities of $20.52 billion and €1.045 billion under the 2026–2027 Supplementary External Borrowing Plan.
The proposed facilities are intended to support projects and programmes across several sectors, including infrastructure, agriculture, healthcare, education, water supply, security and employment generation.
The borrowing request is currently undergoing legislative consideration.
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