Tinubu Seeks NASS Approval for Additional $347m Loan

By Blessing Patrick

President Bola Ahmed Tinubu has approached the National Assembly, seeking approval for a fresh external loan of $347 million under the revised 2025–2026 borrowing framework.

The request was formally presented during Wednesday’s plenary session of the House of Representatives, where Speaker Tajudeen Abbas read the President’s letter on the floor of the chamber.

Justifying the loan request, President Tinubu explained that the additional borrowing is prompted by increased financial requirements for the Lagos-Calabar Coastal Highway, whose total cost has risen by $47 million, from the earlier $700 million to $747 million.

Providing clarity on the matter, the President noted that the initial borrowing proposal submitted to the National Assembly only secured lender commitments totaling $700 million. He added that the financing gap was addressed through export credit agencies, necessitating a loan value adjustment to reflect the final terms in the financial agreements.

“It has become imperative to raise the financing amount for the project by $47 million to align it with the value stipulated in the financing documents,” Tinubu stated.

Additionally, $300 million of the loan is earmarked for the Nigerian Universal Communications Access Project, an ambitious telecoms programme designed to bridge connectivity gaps in rural areas by erecting 7,000 communication towers in underserved communities.

It would be recalled that in May, the President initially sought legislative consent for a total borrowing plan amounting to $21.54 billion, €2.19 billion, and ¥15 billion, along with a €65 million grant.

With the latest funding request, comprising $47 million for the Lagos-Calabar road and $300 million for the telecoms access project, the total external borrowing plan now climbs slightly to $21.89 billion.

Following the presentation of a report by Hon. Abubakar Nalaraba, Chairman of the House Committee on Aids, Loans and Debt Management, the House, under the leadership of Deputy Speaker Benjamin Kalu, approved the loan request.

Hon. Nalaraba maintained that despite the incremental borrowing, Nigeria’s debt profile remains within manageable limits.

He said, “With a national debt stock exceeding N145 trillion, our debt-to-GDP ratio currently stands at approximately 50%, which is still below the international benchmark of 56%.”

He further highlighted that the Tinubu administration had made progress in reducing the country’s debt service-to-revenue ratio, bringing it down from over 90% to below 70%.

According to the committee’s report, the Federal Government’s capacity to manage its debt obligations is expected to improve, driven by projected revenue increases under the Nigerian Tax Act 2025, which forecasts over 18% year-on-year growth starting in 2026.