Reps Approve Tinubu’s $347m Loan Request to Cover Cost Hike in Lagos-Calabar Coastal Highway, Rural Telecoms Expansion

The Nigerian House of Representatives has approved President Bola Tinubu’s request to borrow an additional $347 million under Nigeria’s 2025–2026 borrowing plan, citing increased funding requirements for key infrastructure projects, including the Lagos-Calabar Coastal Highway and a rural telecommunications initiative.

Tinubu’s letter to the National Assembly, read during plenary by Speaker Tajudeen Abbas on Wednesday, justified the loan as necessary due to a $47 million rise in the cost of the Lagos-Calabar Coastal Highway project. The project’s total financing requirement has now increased from $700 million to $747 million.

According to Tinubu, the cost escalation stems from shortfalls in original financing commitments. The shortfall is now being addressed through additional financing from export credit agencies.

The President also earmarked $300 million from the loan for the Nigerian Universal Communications Access Project, a major initiative aimed at deploying over 7,000 telecom towers to bridge the digital divide in underserved rural areas.

The approved loan forms part of the broader 2025–2026 borrowing plan, which was initially pegged at $21.54 billion, €2.19 billion, and ¥15 billion, with an additional €65 million in grant funding. The new approvals increase the dollar portion of the loan to approximately $21.89 billion.

Presenting the House Committee on Aids, Loans and Debt Management’s report, Committee Chairman Abubakar Nalaraba (APC, Nasarawa) assured lawmakers that Nigeria’s growing debt remains within manageable limits.

The report also highlighted progress in managing Nigeria’s debt service obligations. According to the committee, the debt service-to-revenue ratio has declined from over 90 per cent to below 70 per cent under the Tinubu administration.

However, the Lagos-Calabar Coastal Highway project has continued to spark public criticism over the project’s pace and growing concerns about transparency under the Bola Tinubu regime.

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