President Tinubu Seeks Approval for N10.8 Trillion External Loan to Fund Infrastructure

President Bola Tinubu has submitted a formal request to the House of Representatives seeking approval for the implementation of N10.8 trillion in new external borrowing. According to the President, these funds are earmarked to support projects outlined in the 2026 Appropriations Act, which the administration identifies as essential for sustaining recent macroeconomic gains.

Infrastructure as an Economic Catalyst

In a document titled From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy, President Tinubu argued that the focus of the administration’s fiscal policy should be on the utility of borrowed capital rather than the total volume of debt. He emphasized that the government aims to build a $1 trillion economy by 2030, a goal he claims is unattainable with existing infrastructure.

The proposed projects include several high-profile transportation and energy initiatives:

• Lagos-Calabar Coastal Highway: Projected to reduce transport costs by 15 to 20 per cent and contribute up to two per cent to the national GDP.
• Sokoto-Badagry and Trans-Sahara Superhighways: Designed to connect economic regions and facilitate trade.
• Energy and Trade Infrastructure: Upgrades to the national electricity grid and major commercial ports in Lagos.

The President stated that these investments are expected to generate approximately 100,000 direct construction jobs and over 150,000 indirect jobs in logistics and related sectors.

Economic Indicators and Debt Management

The administration highlighted several economic metrics to justify its fiscal direction. According to the President, Nigeria’s economy grew by 4.43 per cent in the second quarter of 2026, while headline inflation declined to 14.63 per cent in September. Additionally, the tax-to-GDP ratio has reportedly risen to 12.5 per cent, and gross external reserves were reported at $55.1 billion as of October 9, 2026.

Despite these figures, the President acknowledged the fiscal challenges facing the country. He noted that debt servicing accounted for roughly 65 per cent of revenue in the first half of 2026. To mitigate risks, the administration stated it is seeking longer-term loans to align repayment schedules with the lifespan of the infrastructure projects.

Labor Union Concerns

The request has met with criticism from the Nigeria Labour Congress (NLC). NLC President Joe Ajaero questioned the necessity of further external borrowing, particularly given the government’s claims of increased revenue following the removal of the petrol subsidy and the rise in international crude oil prices.

Ajaero pointed out that the 2026 budget was benchmarked at $70 per barrel, while current market prices have climbed above $100 per barrel due to geopolitical tensions. He argued that these increased earnings should reduce the reliance on international financial institutions like the World Bank and the IMF. While the NLC does not have the legislative authority to block the loans, Ajaero urged the public and relevant oversight agencies to demand greater accountability regarding how these funds are utilized.

Conclusion

As the House of Representatives considers the request, the debate centers on the balance between long-term infrastructure investment and the immediate burden of national debt. While the administration maintains that these loans are a strategic necessity for future growth, critics continue to emphasize the need for transparency and fiscal prudence in the face of rising debt-servicing costs.

<

p class=”vbna-source-note”>Source: Channels Television

Tags: Economy · Infrastructure · National Assembly · news · Nigeria · NLC · Tinubu · ViralBrief