President Bola Tinubu has formally approached members of the House of Representatives for authorization to implement an external loan amounting to approximately N10.8 trillion. This funding is intended to facilitate the implementation of projects specified in the 2026 Appropriations Act, with the goal of bolstering the country’s macroeconomic achievements.
The President’s request comes amid rising criticism regarding the government’s approach to increasing external borrowings, which some economic observers argue could further compromise Nigeria’s financial stability. In response to these concerns, Tinubu emphasized the necessity of long-term investments in infrastructure to elevate Nigeria’s economy to a targeted $1 trillion by 2030.
He noted that significant projects such as the Lagos-Calabar Coastal Highway and improvements to the electricity grid are slated for funding through this loan. Tinubu highlighted that these infrastructure enhancements would facilitate economic connectivity, reduce transportation costs, and spur job creation in various sectors.
In a statement outlining his administration’s investment strategy, Tinubu stated that the focus should not just be on the total amount borrowed but on the beneficial outcomes of these investments for the nation. He claimed that the Coastal Highway alone could significantly enhance economic activity by reducing transport costs and generating numerous direct and indirect job opportunities.
The President also pointed to improvements in key economic metrics since his administration enacted major reforms. He cited a 4.43% growth in the economy as of the second quarter of 2026 and a decrease in inflation rates. However, he acknowledged the pressing need to manage public debt effectively, which currently stands at 35.75% of GDP, alongside the challenge of servicing these debts.
Critics, including the Nigeria Labour Congress (NLC), have questioned the urgency of additional loans considering the government’s assertions of increased revenue from the removal of the petrol subsidy and a recent surge in crude oil prices. NLC President Joe Ajaero called for clarification on the rationale behind continued borrowing, urging the government to demonstrate financial accountability.
While Tinubu recognizes the necessity of securing loans for infrastructure development, he stated that the success of this borrowing initiative would ultimately depend on the tangible benefits realized from completed projects.
