President Tinubu Seeks Approval for N10.8 Trillion External Loan for Infrastructure Projects

President Bola Tinubu has asked members of the House of Representatives to approve a new external loan of about N10.8 trillion. This loan is part of the 2026 Appropriations Act and is intended to fund various projects that will help strengthen Nigeria’s economy.

Critics have raised concerns about the increasing external debt, suggesting it could harm the economy instead of helping it. In response, Tinubu emphasized the need for long-term investment in infrastructure to achieve Nigeria’s goal of becoming a $1 trillion economy by 2030.

In a recent statement, Tinubu highlighted that the key issue is not just how much money the government borrows, but what the borrowed funds will accomplish. He mentioned several major projects, including the Lagos-Calabar Coastal Highway and upgrades to major ports, which are expected to improve trade and create jobs.

The President noted that the Lagos-Calabar Coastal Highway could lower transport costs by up to 20% and potentially add 2% to Nigeria’s Gross Domestic Product (GDP). He projected that the construction of this highway alone could create around 100,000 direct jobs.

Despite the push for more borrowing, the Nigeria Labour Congress (NLC) has questioned the necessity of these loans, especially since the government claims to have increased revenue after removing the petrol subsidy. NLC President Joe Ajaero challenged the government to justify its borrowing strategy, given the rise in oil prices.

Tinubu acknowledged the importance of managing public spending, noting that Nigeria’s debt currently stands at about 35% of GDP. He assured that the government’s economic plan aims to avoid unnecessary borrowing and ensure that spending is backed by available funds.

Ultimately, Tinubu stated that the success of the borrowing initiative will be measured by the completion of projects and the positive impact on the lives of Nigerians.