President Bola Tinubu has written to the House of Representatives, seeking approval for about ₦10.8 trillion in fresh external borrowing under the 2026 Appropriations Act to finance infrastructure and other development projects.
In a statement titled From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy, the President said the loans would support projects aimed at strengthening Nigeria’s economy, including the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid improvements and upgrades to major commercial ports in Lagos.
President Tinubu argued that the focus should be on the value and economic benefits of borrowed funds rather than the amount, saying the infrastructure investments would reduce transportation costs, connect markets, support industries and attract private investment. He projected that the Lagos-Calabar Coastal Highway alone could reduce transport costs along its route by 15 to 20 per cent, contribute up to two per cent to GDP and generate about 100,000 direct and over 150,000 indirect jobs.
The President maintained that Nigeria would need improved infrastructure to achieve its ambition of becoming a $1 trillion economy by 2030. He also cited economic gains recorded since the introduction of major reforms in May 2023, including 4.43 per cent GDP growth in the second quarter of 2026, a decline in inflation to 14.63 per cent in September and an increase in gross external reserves to $55.1 billion as of October 9.
However, President Tinubu acknowledged the country’s debt obligations, noting that public debt stood at 35.75 per cent of GDP in the second quarter of 2026, while debt servicing accounted for about 65 per cent of revenue in the first half of the year. He said the government would pursue longer-term loans with repayment periods aligned with the lifespan of funded projects, while avoiding deficit financing through money printing and spending commitments unsupported by available funds.
Meanwhile, the Nigeria Labour Congress (NLC) has questioned the need for further foreign loans despite the Federal Government’s claims of increased revenue following the removal of petrol subsidy. NLC President Joe Ajaero argued that higher oil prices and increased allocations to states should prompt the government to explain its continued borrowing plans.
Ajaero also questioned the proposed borrowing from international financial institutions, including the International Monetary Fund and the World Bank, noting that the 2026 budget was based on an oil price benchmark of $70 per barrel, while crude prices had risen above $100 following tensions involving the United States and Iran.
Although he clarified that the NLC had no authority to approve or reject government borrowing, Ajaero urged Nigerians and relevant institutions to demand greater accountability over the loans.
Tinubu, however, said the success of the borrowing plan would ultimately be measured by the completion of projects, value for money and improvements in the lives of Nigerians.