ABUJA, Nigeria — President Bola Tinubu has requested the National Assembly to approve an additional $347 million in external loans as part of the 2025–2026 borrowing plan, citing rising project costs and a newly identified funding need.
The request, contained in a letter read by Speaker Tajudeen Abbas during plenary on Wednesday, July 23, 2025, brings Nigeria’s total external borrowing request under the current plan to $21.89 billion, up from the previously approved $21.54 billion.
According to the president, the increase stems from two major components: a $47 million rise in the funding requirement for the Lagos-Calabar Coastal Highway project, and a $300 million allocation for a new nationwide telecommunications infrastructure initiative.
The Lagos-Calabar Coastal Highway, initially projected to cost $700 million, now requires $747 million due to adjustments in the financing structure.
Tinubu explained that when the plan was first submitted, financing commitments had only reached $700 million.
The shortfall has since been bridged through arrangements with export credit agencies, necessitating an increase to match the loan terms stipulated by the lenders.
The president also disclosed that the Nigerian Universal Communications Access Project, which aims to expand digital infrastructure to underserved and remote communities, was inadvertently omitted from the original borrowing plan.
The $300 million project is intended to fund the deployment of 7,000 telecommunications towers across the country, a key component of efforts to bridge Nigeria’s persistent digital divide.
This latest request adds to Tinubu’s initial proposal submitted in May, which sought approval for $21.54 billion, €2.19 billion, and ¥15 billion in loans, along with a €65 million grant.
With the additions, the external borrowing figure now stands at $21.89 billion.
On Tuesday, July 22, 2025, the Senate approved the updated borrowing plan.
The House of Representatives followed suit on Wednesday, July 23, 2025, after reviewing the report submitted by Abubakar Nalaraba, chair of the House Committee on Aids, Loans, and Debt Management.
Despite concerns about Nigeria’s growing debt, the National Assembly said the additional borrowing remains within manageable limits.
“At over N145 trillion, the debt-to-GDP ratio of about 50% is within the international threshold of 56%,” the House stated.
It further noted improvements in the federal government’s fiscal capacity: “The current administration has succeeded in reducing the high debt service-to-revenue ratio from over 90% to less than 70%.”
The lawmakers also pointed to the Nigerian Tax Act 2025, projecting an 18% year-on-year growth in revenue beginning in 2026, as a source of optimism for Nigeria’s debt sustainability.
“The anticipated revenue expansion reduces the risk of future debt distress and provides a buffer for debt servicing,” the House concluded.
