The House of Representatives has approved President Bola Tinubu’s request for an additional $347 million loan under Nigeria’s 2025–2026 borrowing plan, to finance critical infrastructure projects, including the Lagos-Calabar Coastal Highway and a landmark universal communications access project.
The approval, granted during plenary on Wednesday, raises Nigeria’s 2025-2026 external borrowing plan from $21.54 billion to $21.89 billion. Speaker Tajudeen Abbas read the President’s request before the Green Chamber adopted the report of the House Committee on Aids, Loans, and Debt Management, chaired by Abubakar Nalaraba.
President Tinubu explained that the additional borrowing became necessary to cover funding gaps in two priority projects:
Lagos-Calabar Coastal Highway Project – The total cost of the road project increased from $700 million to $747 million, requiring an additional $47 million to meet financing agreements with export credit agencies.
Universal Communications Access Project – A total of $300 million will fund the deployment of over 7,000 telecommunications towers across rural and underserved communities. The project is aimed at bridging Nigeria’s digital divide and improving internet and mobile connectivity nationwide.
The Lagos-Calabar Coastal Highway, one of Nigeria’s largest road infrastructure projects, is expected to significantly boost trade, tourism, and economic integration across southern states. Meanwhile, the communications project is projected to create thousands of jobs and expand access to e-commerce, fintech, and digital education in rural areas.
The approval comes amid concerns over Nigeria’s rising public debt, which currently stands at over N145 trillion. However, Nalaraba reassured lawmakers that Nigeria’s debt-to-GDP ratio of 50% remains below the international threshold of 56%.
He added that the Federal Government has managed to reduce the debt service-to-revenue ratio from over 90% to less than 70%, citing projected revenue growth from the Nigerian Tax Act 2025, which is expected to increase government earnings by over 18% year-on-year from 2026.
“The Federal Government’s capacity to service new debts is stronger than before, and these loans are targeted at growth-driven projects,” Nalaraba said.
Deputy Speaker Benjamin Kalu, who presided after Abbas left the plenary, approved the request following its adoption.
Analysts believe the approval underscores Tinubu’s infrastructure-driven economic strategy. The Lagos-Calabar Highway is expected to stimulate commercial activities along the coastal corridor, reducing travel time between Lagos and Cross River State.
Similarly, the telecommunications expansion will deepen digital inclusion, potentially increasing mobile broadband penetration, boosting financial inclusion through mobile banking, and creating new opportunities for tech startups in remote regions.
However, economic experts caution that effective monitoring of loan utilization is critical to prevent mismanagement and ensure the projects deliver expected benefits.