Daniel Otera
President Bola Tinubu has again approached the National Assembly for approval of a fresh $347 million external loan this time to cover additional costs tied to the Lagos-Calabar Coastal Highway, a project already mired in controversy.
The request, presented on Wednesday by Speaker Tajudeen Abbas, marks yet another adjustment to the federal government’s 2025–2026 borrowing plan.
Tinubu said the initial $700 million budget for the coastal corridor project was no longer sufficient, with revised estimates raising the total to $747 million. The extra funds, he argued, are critical to ensure timely completion of the highway, which he described as a strategic infrastructure initiative expected to boost trade, job creation, and regional development.
“This project is critical to economic growth and regional integration. It was selected based on economic value, job creation potential, and its impact on entrepreneurship and poverty reduction,” Tinubu wrote in his letter to lawmakers.
The House has referred the proposal to the Joint Committee on Finance, Aids, Loans, and Debt Management for review.
The new loan request comes amid rising anxiety over Nigeria’s expanding debt load. According to data released by the Debt Management Office (DMO), the country’s total public debt stock hit ₦121.67 trillion (about $91.46 billion) by March 2024, a steep climb driven by fresh loans, currency depreciation, and limited revenue growth.
Since assuming office, President Tinubu has secured legislative approval for multiple loans. In late 2023, lawmakers cleared a $7.8 billion and €100 million external borrowing plan. By March 2025, the government returned to request an additional $21.5 billion in foreign loans and ₦757.9 billion in domestic bonds, part of which was intended to clear long-standing pension arrears.
Despite repeated assurances from the federal government that these loans are concessional and geared toward critical development, economists and civil society organisations have raised red flags.
“Nigeria risks walking into a fiscal trap,” one Abuja-based policy analyst told The Observers Times. “Borrowing isn’t bad in itself, but we’re not seeing the productivity or transparency needed to justify these sums.”
The Lagos-Calabar Coastal Highway has become a lightning rod for criticism. Several analysts have flagged irregular cost reviews, unclear budget frameworks, and what they describe as a fast-tracked execution process that overlooked key legal requirements.
In May, there were reports that over ₦1 trillion had already been released for the project without clear breakdowns or oversight. Similarly, Premium Times quoted former Vice President Atiku Abubakar criticising the project for allegedly bypassing competitive bidding and environmental approvals.
“The whole process has lacked transparency from day one,” Atiku said, calling the latest cost adjustments “irregular and troubling”.
With Nigeria’s revenue-to-debt ratio among the worst in sub-Saharan Africa, experts warn that continued reliance on borrowing especially for projects facing transparency questions could place future generations at risk.