Reps approve Tinubu’s request for $347m additional borrowing

President Bola Tinubu has approached the National Assembly with a fresh request to borrow $347 million under the 2025–2026 borrowing plan.

The request was read on the floor of the House of Representatives by Speaker Tajudeen Abbas during Wednesday’s plenary.

According to the President’s letter, $47 million of the amount is needed to cover a funding shortfall for the Lagos-Calabar Coastal Highway project.

Initially budgeted at $700 million, the total now stands at $747 million.

Tinubu explained that while lenders had committed $700 million, export credit agencies stepped in to cover the $47 million gap, hence the need to revise the total loan size to align with financial documents.

Additionally, the President is seeking $300 million for the Nigerian Universal Communications Access Project.

The initiative aims to deploy 7,000 telecom towers in underserved rural communities across the country, helping to close the digital divide.

This request slightly increases the original $21.54 billion borrowing plan, first submitted in May, to $21.89 billion.

The plan also includes €2.19 billion, ¥15 billion, and a €65 million grant.

Following the submission of a report by Chairman of the House Committee on Aids, Loans and Debt Management, Abubakar Nalaraba, the House approved the loan.

Deputy Speaker Benjamin Kalu presided over the session.

Despite concerns about Nigeria’s borrowing trend, Nalaraba maintained that the country’s debt portfolio remains within acceptable limits.

He cited a debt-to-GDP ratio of around 50%, below the 56% international threshold, and a reduction in the debt service-to-revenue ratio from over 90% to less than 70%.

He added that future revenue gains from the Nigerian Tax Act 2025, which is expected to grow by over 18% from 2026, will enhance the government’s ability to service its debts.

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This development comes a day after the Senate gave its nod to Tinubu’s $21 billion external borrowing request for the 2025–2026 fiscal cycle.