President Bola Tinubu has requested approval from the National Assembly to secure an additional $347 million in external loans as part of Nigeria’s 2025–2026 borrowing plan.
The new request was read by Speaker Tajudeen Abbas during Wednesday’s plenary session of the House of Representatives.
According to the letter addressed to the lawmakers, Tinubu explained that the additional funds are needed to address a financing gap in two major national infrastructure projects: the Lagos-Calabar Coastal Highway and the Nigerian Universal Communications Access Project.
The President noted that while an initial financing arrangement had secured $700 million for the coastal highway, the project cost has now increased by $47 million, bringing the total to $747 million.
He said the shortfall would be bridged through contributions from 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,” Tinubu stated in the correspondence.
In addition to the road project, the President disclosed that $300 million is required to fund the Universal Communications Access Project.
This initiative aims to bridge the country’s digital divide by deploying 7,000 telecom towers in underserved and remote communities across Nigeria.
The House of Representatives approved the loan following the presentation of a report by the Chairman of the Committee on Aids, Loans, and Debt Management, Abubakar Nalaraba. Deputy Speaker Benjamin Kalu presided over the session.
Nalaraba argued that Nigeria’s rising debt remains within sustainable levels, citing the current debt-to-GDP ratio of around 50 percent, which he said is below the international threshold of 56 percent.
“In spite of increased borrowing, our debt profile remains manageable,” he told fellow lawmakers.
“Moreover, the government has reduced the debt service to revenue ratio from over 90 percent to below 70 percent.”
He added that the Federal Government’s repayment ability is expected to improve with revenue increases projected under the Nigerian Tax Act of 2025, which anticipates an 18 percent year-on-year revenue growth starting in 2026.
The request follows the Senate’s approval on Tuesday of Tinubu’s larger external borrowing plan totaling over $21 billion, €2.19 billion, and ¥15 billion for the 2025–2026 fiscal cycle. A €65 million grant was also included in that proposal.
With the new $347 million request, Nigeria’s total borrowing under the plan now stands at approximately $21.89 billion.
