Nigeria’s rising debt burden came under fresh scrutiny on Wednesday as the House of Representatives approved President Bola Tinubu’s request to secure an additional $347 million loan for key infrastructure projects, including the controversial Lagos-Calabar Coastal Highway and a nationwide rural telecom expansion scheme.
The approval, part of the broader 2025–2026 borrowing plan, raises the total facility from $21.54 billion to $21.89 billion. Speaker of the House, Tajudeen Abbas, read the President’s letter during plenary, justifying the new request on the basis of increased project cost and previously unmet financing gaps.
Tinubu, in the correspondence, explained that the Lagos-Calabar Highway project’s cost had risen by $47 million from $700 million to $747 million necessitating a fresh loan to close the shortfall.
He added that lenders had initially committed only $700 million, with the remaining balance to be covered by export credit agencies.
Another $300 million will fund the Nigerian Universal Communications Access Project, which aims to bridge the digital divide by erecting 7,000 telecommunications towers in hard-to-reach rural areas nationwide.
The House adopted the recommendation of Abubakar Nalaraba, Chairman of the Committee on Aids, Loans, and Debt Management, who argued that despite concerns, the country’s debt remains within sustainable levels.
He cited a debt-to-GDP ratio of around 50 percent, below the international threshold of 56 percent.
“The administration has reduced the debt service-to-revenue ratio from over 90 per cent to below 70 per cent,” Nalaraba said. “This is backed by the Nigerian Tax Act 2025, which is projected to increase revenues by over 18 percent from 2026.”
Deputy Speaker Benjamin Kalu presided over the approval process after the Speaker exited the session midway.
Despite assurances from the government, economic experts continue to raise concerns over Nigeria’s rising external debt profile. They warn that without a corresponding increase in revenue generation and transparent fiscal management, the country could face long-term sustainability challenges.
A recent report by The Guardian Nigeria noted that “rising debt and weak revenue threaten fiscal sustainability,” cautioning that such trends could place undue financial pressure on future administrations and the nation’s economic stability if not urgently addressed.
