THE House of Representatives has approved President Bola Tinubu’s request for a $347 million loan as part of the 2025–2026 borrowing plan, following its presentation during plenary yesterday.
The House Speaker Tajudeen Abbas read the president’s letter, which outlined the need for additional funding to cover rising costs in key infrastructure projects.
Notably, the Lagos-Calabar Coastal Highway project saw a $47 million increase in cost—from $700 million to $747 million—prompting the need for extra financing.
According to Tinubu, the initial funding arrangement only secured $700 million, with export credit agencies bridging the shortfall.
He emphasized that adjusting the financing to reflect the $747 million total was essential for the project’s continuity.
In addition to the highway project, $300 million from the approved loan will fund the Nigerian Universal Communications Access Project. This initiative aims to expand digital connectivity by installing 7,000 telecom towers in remote areas, helping to bridge the digital divide nationwide.
This new loan raises the overall foreign borrowing figure from $21.54 billion to $21.89 billion, following Tinubu’s broader borrowing plan submitted in May. That request also included €2.19 billion, ¥15 billion, and a €65 million grant.
Presenting the report, Chairman of the House Committee on Aids, Loans and Debt Management, Abubakar Nalaraba, assured lawmakers that the country’s debt level remains within acceptable international standards. He stated that Nigeria’s debt-to-GDP ratio stands at about 50%, below the global threshold of 56%.
Nalaraba also noted progress in reducing the debt service-to-revenue ratio—from over 90% to under 70%—and expressed optimism about increased government revenue through the anticipated gains from the Nigerian Tax Act 2025, expected to grow over 18% annually from 2026.
Deputy Speaker Benjamin Kalu, who presided over the latter part of the session, formally approved the loan request.