Tinubu seeks additional $347m loan for coastal highway project

President Bola Tinubu has asked the House of Representatives to approve an additional $347 million external loan as part of the federal government’s 2025–2026 borrowing plan.

The request was conveyed in a letter read by Speaker Abbas Tajudeen during Wednesday’s plenary session. According to the president, the adjustment in the loan request became necessary due to a cost increase in the Lagos-Calabar Coastal Highway project.

Originally budgeted at $700 million, the project’s revised cost now stands at $747 million, prompting a $47 million increase.

Tinubu said the additional funding is crucial to ensure timely and effective completion of the strategic infrastructure project, which is expected to boost connectivity and economic development along Nigeria’s coastal corridor.

READ ALSO: Tinubu holds crucial briefing with finance, budget, gas ministers

He said the projects under the revised borrowing plan were selected based on rigorous economic evaluations and their projected contribution to national development goals, including job creation, skill development, promotion of entrepreneurship, and poverty reduction.

He further noted that the inclusion of the revised projects in the borrowing plan would enable financial closure and support timely implementation.

The House referred the president’s request to the Joint Committee on Finance, Aids, Loans and Debt Management for further legislative scrutiny.

The committee is expected to review the technical and financial justification of the new borrowing request before presenting its recommendations to the full chamber.

Previous external borrowing plan
The latest request comes amid Nigeria’s expanding borrowing profile under the Mr Tinubu administration.

In November 2023, the President sought legislative approval for a $7.8 billion and €100 million borrowing plan to fund key infrastructure and social development projects over the 2022–2024 period.

In March 2025, Mr Tinubu sought legislative approval for a new external borrowing plan of over $21.5 billion, and a domestic bond issuance of ₦757.9 billion to settle outstanding national pension liabilities. The Senate approved the borrowing plan on Tuesday.

Meanwhile, as of March 2025, the country’s total public debt stock stood at over ₦121 trillion (approximately $91 billion), according to figures released by the Debt Management Office (DMO).

Despite frequently raised concerns over the sustainability of the country’s borrowing spree, warning of future repayment burdens and fiscal vulnerabilities, the federal government has, however, maintained that concessional loans are essential to bridging Nigeria’s infrastructure gap and stimulating growth.