Tinubu Seeks to Increase External Borrowing Plan, Requests Additional $47m for Lagos-Calabar Coastal Highway

President Bola Ahmed Tinubu has formally requested the House of Representatives to amend the Federal Government’s External Borrowing Plan for the 2025–2026 period, seeking an additional $47 million for the Lagos-Calabar Coastal Highway project.

The proposed amendment will raise the project’s total cost from $700 million to $747 million.

The President’s request was conveyed through a letter signed by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, and presented to lawmakers on the floor of the House by Speaker Tajudeen Abbas.

The letter outlines the rationale for the increased funding, stating that the additional $47 million is necessary to meet new project requirements and rising costs associated with the massive infrastructure development along Nigeria’s southern coast. The Lagos-Calabar Coastal Highway, one of the administration’s flagship projects, is aimed at improving connectivity and boosting economic integration between the South-West and South-South regions.

In addition to the highway project, the borrowing plan includes a $300 million allocation for the Nigeria Universal Communication Access Project.

The initiative is designed to expand mobile communication services to more than 21 million people in 4,834 previously unconnected communities across the country. The communication project will involve the deployment of 7,000 telecommunications towers, particularly in remote and underserved areas, as part of efforts to bridge Nigeria’s digital divide.

The amendment to the borrowing plan is part of the Federal Government’s broader infrastructure and development financing strategy, which has continued to rely on concessional external loans to support capital-intensive projects. Government officials argue that such investments are necessary to unlock long-term economic growth, improve access to essential services, and enhance national competitiveness.

While the Lagos-Calabar Coastal Highway and the universal communication initiative have been praised for their developmental potential, they have also drawn scrutiny from critics who question the growing reliance on external debt amid a challenging economic climate and rising inflation.

The House of Representatives is expected to deliberate on the President’s request in the coming days, as lawmakers consider the economic implications and feasibility of the proposed funding adjustments.