Nearly $857 million committed to four Nigerian government-backed projects financed through external loans has been linked to abandoned infrastructure, incomplete programmes and poorly performing public services, raising concerns over President Bola Tinubu’s plan to borrow another $21.7 billion.
The findings have renewed questions about whether previous foreign loans have delivered the infrastructure and economic benefits needed to justify the country’s growing debt obligations.
Tinubu is seeking approval from the National Assembly to secure $20.52 billion and €1.045 billion in external loans for the 2026 and 2027 fiscal years.
The proposed facilities are expected to finance projects across electricity, transportation, agriculture, healthcare, education, water supply and national security, alongside employment generation and financial management reforms.
However, BusinessDay’s investigation found that four previously financed projects have struggled to deliver their intended benefits, exposing weaknesses in project implementation, maintenance and accountability.
According to the Debt Management Office (DMO), Nigeria’s public debt stood at ₦166.79 trillion at the end of June 2026. Agora Policy, an independent policy think tank, estimated that the debt increased by ₦79.41 trillion, or 91 percent, between June 2023 and June 2026.
If the latest borrowing request is fully approved and drawn down, the country’s debt could approach ₦200 trillion, depending on exchange rates and other debt movements.
$399.5m security communications project becomes inactive
The National Public Security Communications System (NPSCS), designed to improve security surveillance and communication among law enforcement agencies, has become largely inactive.
BusinessDay’s investigation found that some facilities in Lagos had been abandoned, vandalised or left to deteriorate.
The project was awarded to China’s ZTE Corporation in August 2010 for $470 million. It was financed through a $399.5 million loan from China Exim Bank, while the Federal Government was expected to provide $70.5 million as counterpart funding.
The system was designed to provide surveillance cameras, command centres and communication infrastructure to support security operations in major cities, including Lagos and Abuja. Approximately 2,000 CCTV cameras were among the planned installations.
In July 2023, the Federal Government inaugurated a project management team to supervise the rehabilitation and management of the network through a concession arrangement.
However, there has been limited public information on how much of the infrastructure has been restored, the number of operational facilities and whether the system is delivering its intended security benefits.
DMO records showed that $276.58 million remained outstanding on the China Exim Bank loan as of September 30, 2021.
$7.5m electricity project fails to power rural communities
A $7.5 million rural electrification project covering communities in Enugu, Cross River and Ogun states has also failed to provide reliable electricity to its intended beneficiaries.
Although infrastructure was installed across several of the 72 locations covered by the programme, some communities have continued to experience power shortages.
In Ogun State, BusinessDay found that transformers, electricity poles and wires had been left unused despite reports that the project was approximately 95 percent complete.
An investigation by the International Centre for Investigative Reporting (ICIR) also found that communities in Ogoja Local Government Area of Cross River State had gone without the expected electricity supply for about a decade after the project began.
Some installed transformers had deteriorated, while residents resorted to alternative arrangements to access electricity.
In Amachalla, Enugu State, a community representative told ICIR that the project had been completed but was never put into operation.
The project, financed by the International Development Association under the National Energy Development Project, was intended to expand rural electricity access and strengthen existing distribution networks.
$250m urban water project delivers limited results
The Third National Urban Water Sector Reform Project, which received an original financing approval of $250 million, also struggled to meet its objectives.
The World Bank approved the programme in April 2014 to improve water access in Bauchi, Ekiti and Rivers states and strengthen the operations of water utilities.
However, the project closed in March 2021 with an overall outcome rating of moderately unsatisfactory.
Its actual disbursements were substantially lower than the original $250 million approval, meaning the approved amount should not be interpreted as the money entirely spent or lost.
Assessments by the World Bank and concerns raised by Corporate Accountability and Public Participation Africa (CAPPA) point to shortcomings in translating the financing into sustained improvements in water supply.
The project highlights the difference between securing development financing and delivering reliable public services to the communities expected to benefit.
$200m rural telephony programme remains incomplete
The first phase of the National Rural Telephony Programme was financed through a $200 million loan from China Exim Bank but remained incomplete despite the repayment of the loan’s principal and interest.
A House of Representatives resolution adopted on March 16, 2017, raised concerns about the programme’s implementation.
Lawmakers said the Federal Government had also paid ₦300 million in counterpart funding for the second phase, which stalled after China failed to release its contribution.
They further warned that the technology risked becoming outdated as GSM services continued expanding across the country.
A subsequent inspection by lawmakers reportedly
