President says funds will finance critical infrastructure projects, boost economic growth, while NLC questions need for fresh foreign loans despite increased government revenue.
President Bola Tinubu has written to the House of Representatives, seeking approval for the implementation of external borrowing worth approximately N10.8 trillion under the 2026 Appropriations Act.
The President said the proposed borrowing would finance critical infrastructure projects and sustain the economic gains recorded by his administration.
Tinubu made the request while defending the Federal Government’s borrowing strategy in a statement titled, From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy.
He explained that the focus should not be on the amount borrowed but on the value the funds would generate through completed projects and improved economic activities.
The President listed the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid improvements and upgrades to major commercial ports in Lagos among the projects expected to benefit from the financing.
According to him, the projects, alongside investments in healthcare, education and vocational training, would improve transportation, connect economic regions, support agriculture and industries, and attract private investment.
Tinubu projected that the Lagos-Calabar Coastal Highway alone could reduce transportation costs along its route by 15 to 20 per cent and contribute up to two per cent to the country’s Gross Domestic Product.
He also estimated that the project would generate about 100,000 direct jobs in construction and engineering, as well as more than 150,000 indirect jobs in logistics and related sectors.
The President maintained that Nigeria required improved infrastructure to achieve its ambition of becoming a one-trillion-dollar economy by 2030.
Highlighting the administration’s economic performance, Tinubu said the economy grew by 4.43 per cent in the second quarter of 2026, while headline inflation declined to 14.63 per cent in September from 20.98 per cent recorded during the corresponding period last year.
He added that the country’s gross external reserves stood at 55.1 billion dollars as of October 9, 2026, while the tax-to-GDP ratio increased to 12.5 per cent from seven per cent.
However, the President acknowledged the need for prudent financial management, noting that public debt stood at 35.75 per cent of GDP in the second quarter of 2026, while debt servicing consumed about 65 per cent of government revenue in the first half of the year.
Meanwhile, the Nigeria Labour Congress has questioned the justification for continued external borrowing despite the removal of petrol subsidy and increased government revenue.
NLC President, Joe Ajaero, said the Federal Government should explain why it continued seeking foreign loans when revenue from oil and other sources had reportedly improved.
Ajaero also questioned the need for additional borrowing following the increase in international crude oil prices above the 70-dollar-per-barrel benchmark used in preparing the 2026 budget.
He urged Nigerians and relevant institutions to demand greater accountability over the government’s borrowing plans.
Tinubu, however, maintained that the success of the borrowing strategy would be measured by the completion of projects, value for money and improvements in the living conditions of Nigerians.
