President Bola Tinubu has formally written to the House of Representatives seeking approval to execute fresh external borrowing of approximately N10.8 trillion, as authorized under the 2026 Appropriations Act.
In the communication, the President stated that the loan proceeds would be deployed to finance key projects detailed in the budget and consolidate existing macroeconomic gains.
The request comes amid mounting public scrutiny and criticism over the administration’s increasing reliance on foreign debt, with detractors warning that continued external borrowing risks worsening Nigeria’s fiscal vulnerability.
In response, President Tinubu defended his administration’s plan to secure additional external loans, asserting that sustained, long-term infrastructure investment is essential for Nigeria to achieve its target of a $1 trillion economy by 2030.
His defense comes as the Nigeria Labour Congress (NLC) challenges the executive’s request seeking National Assembly approval for €1.45 billion and $20.5 billion in foreign loans, questioning the rationale for expanded borrowing alongside official claims of increased revenue following the removal of the petrol subsidy.
In a policy statement titled From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy, the President urged focus on the strategic objectives and intended outcomes of the borrowed funds rather than the absolute debt figure.
“The key question is not how much we borrow, but what we build, the value we create and the future we leave behind,” he said.
Tinubu Cites Projects, Economic Gains
President Bola Tinubu stated that the Lagos-Calabar Coastal Highway project alone could reduce transit expenses along its corridor by 15 to 20 percent while boosting Nigeria’s gross domestic product by up to 2 percent through expanded commercial, tourism, and industrial opportunities.
He projected that the infrastructure project would create more than 100,000 direct positions in engineering and construction, alongside over 150,000 indirect roles across logistics, building materials, and auxiliary sectors.
The President also highlighted improvements across multiple economic indicators since the introduction of key policy adjustments by his administration in May 2023.
He pointed to several structural measures that have strengthened public finances and macroeconomic stability, including the fuel subsidy removal, foreign exchange rate unification, tax system reforms, and inflation containment strategies.
President Tinubu noted that Nigeria’s economy grew by 4.43 percent in the second quarter of 2026, while headline inflation dropped to 14.63 percent in September, down from 20.98 percent recorded in the corresponding period of the previous year.
He stated that as of October 9, 2026, the country’s gross external reserves reached $55.1 billion, which included approximately $46 billion in net reserves.
Tinubu added that net distributions from the Federation Account Allocation Committee (FAAC) rose by 44 percent, expanding from ₦15.2 trillion in 2024 to ₦21.9 trillion in 2025, while Nigeria’s tax-to-GDP ratio increased from 7 percent to 12.5 percent.
Backstory…
Recall that President Bola Tinubu has requested Senate approval for a $7.7 billion foreign borrowing plan. Calculated at an exchange rate of ₦1,400 to the dollar, the loan facility amounts to approximately ₦10.79 trillion.
Meanwhile, the World Bank has warned of costly borrowing as Nigeria’s external debt reaches $145bn.
Read Also: World Bank Warns of Costly Borrowing as Nigeria’s External Debt Reaches $145bn
