President Bola Tinubu has requested the House of Representatives to approve an additional external loan of $347 million, as part of the federal government's borrowing plan for 2025–2026.
The request was communicated through a letter read by Speaker Abbas Tajudeen at Wednesday's plenary session. The president indicated that the adjustment in the loan request was essential due to increased costs associated with the Lagos-Calabar Coastal Highway project.
Initially budgeted at $700 million, the project's revised cost has risen to $747 million, resulting in a $47 million increase.
Tinubu emphasized that the supplementary funding is essential for the timely and efficient completion of this strategic infrastructure project, which aims to enhance connectivity and stimulate economic growth along Nigeria's coastal corridor.
He stated that the projects in the updated borrowing plan were chosen following thorough economic assessments, with their expected impact on national development goals such as job creation, skill enhancement, encouragement of entrepreneurship, and poverty alleviation being key considerations.
He also mentioned that adding the revised projects to the borrowing plan would facilitate financial closure and aid in their timely implementation.
The House sent the president's request to the Joint Committee on Finance, Aids, Loans, and Debt Management for additional legislative review.
The committee is anticipated to evaluate the technical and financial rationale for the new borrowing request prior to submitting its recommendations to the full chamber.
Past external borrowing strategy
The newest request arises as Nigeria's borrowing profile continues to expand under the Tinubu administration.
In November 2023, the President requested legislative approval for a borrowing plan amounting to $7.8 billion and €100 million to finance essential infrastructure and social development projects spanning from 2022 to 2024.
In March 2025, Mr. Tinubu requested legislative approval for a new external borrowing plan exceeding $21.5 billion and proposed issuing domestic bonds worth ₦757.9 billion to address outstanding national pension liabilities. The Senate granted approval for the borrowing plan on Tuesday.
As of March 2025, the country’s total public debt had reached over ₦121 trillion (roughly $91 billion), based on data from the Debt Management Office (DMO).
Although concerns are often raised about the sustainability of the country’s borrowing spree, highlighting future repayment burdens and fiscal vulnerabilities, the federal government insists that concessional loans are crucial for addressing Nigeria's infrastructure gap and promoting growth.
Post a Comment