Tinubu Seeks Fresh $347M Loan to Tackle Coastal Highway, Expand Telecom Across Nigeria

According to IReporter Online, President Bola Tinubu has formally requested the National Assembly’s approval to secure a $347 million external loan as part of Nigeria’s 2025–2026 borrowing strategy. This request was disclosed during Wednesday’s plenary session by the Speaker of the House of Representatives, Tajudeen Abbas, who read the President’s letter before lawmakers.

The President explained that $47 million of the proposed loan would address a funding gap in the Lagos-Calabar Coastal Highway project, whose estimated financing requirement has grown from $700 million to $747 million. Tinubu clarified that the initial financial arrangement secured only $700 million from committed lenders, prompting the need to source the remainder through export credit agencies.

Additionally, the loan includes $300 million for the Nigerian Universal Communications Access Project, a major telecommunications initiative intended to bridge the digital divide across underserved rural regions by installing over 7,000 telecom towers.

This latest request slightly raises the overall size of Nigeria’s external borrowing plan for the 2025–2026 cycle, previously pegged at $21.54 billion. With the inclusion of the Lagos-Calabar project’s additional funding and the communications initiative, the revised plan now stands at $21.89 billion.

Following the presentation of a report by the House Committee on Aids, Loans, and Debt Management, led by Abubakar Nalaraba, the House approved the loan request. Nalaraba assured lawmakers that despite rising debt, the nation’s fiscal position remains stable. He stated that Nigeria’s current debt-to-GDP ratio is about 50%, below the 56% international threshold, while the debt servicing burden has been significantly reduced from over 90% to under 70%.

He added that the Federal Government’s repayment capacity is expected to strengthen with the projected 18% annual increase in revenue, driven by reforms under the Nigerian Tax Act 2025, beginning in 2026.

This development comes on the heels of the Senate’s approval of the $21 billion loan framework earlier in the week.