PRESIDENT Bola Tinubu has formally requested approval from the National Assembly to borrow $347 million under the Federal Government’s 2025–2026 external borrowing plan.
The president cited urgent infrastructure and telecommunications needs for the decision.
The request was read on Wednesday, July 23, by the Speaker of the House of Representatives, Tajudeen Abbas, during plenary.
The request came a day after the Senate approved $21 billion borrowing framework for the same fiscal period.
In his letter to the legislature, Tinubu said $47 million of the total sum would address a funding gap for the Lagos-Calabar Coastal Highway project, whose financing needs have risen from $700 million to $747 million.
He explained that when the initial borrowing plan was submitted, the lead financiers could only secure commitments for $700 million, adding that the additional funds were being backed by export credit agencies.
“It is therefore necessary to increase the value of the financing for the project by $47 million to ensure it aligns with the loan size agreed in the finance documents for the project,” the president said in the letter.
The ICIR reported that the highway project has been enmeshed in controversy, as eminent Nigerians, including the former vice president Atiku Abubakar and Labour Party presidential candidate in the 2023 general elections, Peter Obi, questioned the failure to follow due process required by law.
They further questioned the government’s priorities at a time when there is widespread insecurity across states, coupled with economic hardship that the citizens are faced with.
The president also disclosed that $300 million of the loan would go toward the Nigerian Universal Communications Access Project, aimed at bridging the digital divide through the deployment of 7,000 telecommunications towers in underserved and remote communities.
The House consequently approved the request after considering a report by Abubakar Nalaraba, chairman of the Committee on Aids, Loans and Debt Management.
During deliberations, lawmakers insisted that the country’s debt profile “remains sustainable” despite increased borrowing.
Nalaraba said, “At over N145 trillion, the debt-to-GDP ratio of about 50 per cent is within international threshold (56 per cent).
“The current administration has succeeded in reducing the high debt service to revenue ratio from over 90 per cent to less than 70 per cent.
“The Federal Government’s capacity to service the new debt is bolstered by the anticipated revenue gains from the Nigerian Tax Act 2025, projected to grow by over 18 per cent year-on-year starting from 2026.”
Recall that the Senate approved the 2025-2026 external borrowing plan of 21.5 billion dollars presented by Tinubu for consideration on Tuesday, July 22.
In addition to the borrowing plan, the Senate gave the green light to a loan request of 15 billion Japanese Yen and a grant of 65 million Euros. Lawmakers also approved the issuance of a Federal Government bond worth N757 billion.
The bond, according to the president, is intended to offset accrued pension arrears under the Contributory Pension Scheme (CPS) as of December 2023, providing relief for retirees who have awaited their entitlements.
Mustapha Usman is an investigative journalist with the International Centre for Investigative Reporting. You can easily reach him via: musman@icirnigeria.com. He tweets @UsmanMustapha_M