Reps approve $347m loan for Lagos-Calabar Highway, others amid debt concerns

The House of Representatives has approved President Bola Tinubu’s request to borrow an additional $347 million under the 2025–2026 borrowing plan, aimed at financing the Lagos-Calabar Coastal Highway and a major telecommunications expansion initiative.

Speaker Tajudeen Abbas presented the President’s letter on the floor during Wednesday’s plenary, with Deputy Speaker Benjamin Kalu granting final approval after presiding over the session.

In the letter, Tinubu explained that the $47 million increase for the Lagos-Calabar project was necessitated by a shortfall in the $700 million financing initially committed by lenders.

“It is, therefore, necessary to increase the value of the financing for the project by $47 million to ensure it aligns with the loan size agreed in the finance documents,” the President stated.

The remaining $300 million will be allocated towards the Nigerian Universal Communications Access Project, which aims to deploy 7,000 telecom towers in remote rural communities to bridge the digital divide.

This development slightly raises the total foreign borrowing plan from $21.54 billion to $21.89 billion, as initially submitted by the President in May.

That proposal had included €2.19 billion, ¥15 billion, and a €65 million grant. Presenting the House Committee on Aids, Loans, and Debt Management report, Chairman Abubakar Nalaraba defended the increased borrowing, noting that Nigeria’s debt profile remains within global safety limits.

“At over N145 trillion, the debt-to-GDP ratio of about 50 per cent is within the international threshold of 56 per cent,” he said.

Nalaraba also praised the administration’s efforts to reduce the debt service-to-revenue ratio from over 90 percent to below 70 percent.

He added that the Federal Government’s ability to service future debt is expected to be enhanced by projected revenue increases under the Nigerian Tax Act 2025.

Despite public concerns about rising debt, lawmakers expressed confidence in Nigeria’s capacity to manage its obligations while driving infrastructure and digital development.