President Bola Tinubu has requested National Assembly approval for an additional $347 million external loan under Nigeria’s 2025–2026 borrowing plan, raising the total proposed borrowing to $21.89 billion.
Breakdown of the Additional Loan Request:
- $47 million: To cover the cost increase of the Lagos-Calabar Coastal Highway project. The project’s cost rose from $700 million to $747 million, and export credit agencies filled the financing gap.
- $300 million: For the Nigerian Universal Communications Access Project, which was initially omitted from the borrowing plan. The project aims to deploy 7,000 telecom towers to underserved communities, closing the digital divide.
Legislative Action:
- The House of Representatives approved the request after Speaker Tajudeen Abbas read Tinubu’s letter during plenary.
- The Senate had already approved the amended borrowing plan on Tuesday.
- The approval followed the presentation of a report by Abubakar Nalaraba, Chairman of the House Committee on Aids, Loans, and Debt Management.
Debt Sustainability Assurance:
- The Federal Government’s total debt now stands at over ₦145 trillion.
- Nigeria’s debt-to-GDP ratio is about 50%, which lawmakers say is within the international threshold of 56%.
- The debt service-to-revenue ratio has been reduced from over 90% to under 70%.
- Lawmakers expect the Nigerian Tax Act 2025 to grow revenues by over 18% annually starting in 2026, creating fiscal space to service debt.
The National Assembly emphasized that the additional borrowings remain sustainable and necessary to fund critical infrastructure and digital inclusion projects.
