The House of Representatives, on Wednesday, approved President Bola Tinubu’s request to secure a $347 million loan under the 2025–2026 borrowing plan.
Speaker of the House, Tajudeen Abbas, read the President’s letter during plenary, which outlined the need for additional funding to support the Lagos-Calabar Coastal Highway project and the Nigerian Universal Communications Access initiative.
According to the President, the coastal highway project—which initially secured a $700 million loan—has encountered a $47 million funding gap due to a rise in implementation costs, pushing the total requirement to $747 million. He explained that the shortfall will be covered by 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.
An additional $300 million was also requested to fund the Nigerian Universal Communications Access Project. The initiative aims to bridge the nation’s digital divide through the deployment of 7,000 telecommunications towers in underserved rural communities.
This latest approval brings the total 2025–2026 borrowing plan from the initial $21.54 billion to $21.89 billion.
The House adopted the report presented by Hon. Abubakar Nalaraba, Chair of the Committee on Aids, Loans, and Debt Management. Nalaraba assured lawmakers that Nigeria’s current debt profile, despite the increase, remains sustainable.
“With a total debt stock of over N145 trillion, our debt-to-GDP ratio stands at about 50 percent—well within the international threshold of 56 percent,” he said. “The administration has also reduced the debt service-to-revenue ratio from over 90 percent to under 70 percent.”
Nalaraba added that the government’s repayment capacity will be strengthened by the Nigerian Tax Act 2025, which is projected to boost revenues by more than 18 percent annually starting in 2026.
Deputy Speaker Benjamin Kalu, who presided over the session after Abbas departed midway, gave the final approval for the loan request.