By Emmanuel Buah

Date: October 30, 2026
Category: Politics | Economy | Nigeria

President Bola Tinubu has defended his administration's proposed $21.7 billion external borrowing programme, arguing that the financing is intended to build infrastructure, stimulate economic activity and create opportunities for future generations.

In an article titled From Reforms to Delivery: Our Infrastructure Investment and Growth Strategy, published by the State House on Friday, Tinubu responded to criticism over the scale of the proposed loans.

He argued that the debate should focus not only on how much Nigeria borrows, but also on what the country builds with the money and the economic value those investments generate.

The President identified major infrastructure projects, including the Lagos-Calabar Coastal Highway, Sokoto-Badagry Superhighway, Trans-Sahara Superhighway, electricity grid upgrades and the modernisation of commercial ports in Lagos as important parts of the government's development strategy.

What Is the $21.7 Billion Borrowing Plan About?

The proposed financing covers the Federal Government's 2026–2027 Supplementary External Borrowing Plan.

President Tinubu submitted a request to the National Assembly seeking approval for external financing of approximately:

• $20.52 billion in dollar-denominated facilities.

• €1.045 billion in euro-denominated facilities.

Combined, the proposed financing is valued at approximately $21.7 billion, depending on the exchange rate.

According to the President's request, the funds would support projects across several sectors, including transportation, power, healthcare, agriculture, education, water supply, security and employment generation.

The proposal is intended to finance projects across Nigeria's 36 states and the Federal Capital Territory.

Government Says the Money Will Fund 46 Projects

On Thursday, October 29, Finance Minister Taiwo Oyedele defended the borrowing proposal, describing it as an investment programme rather than simply an accumulation of government debt.

According to the minister, the plan covers 46 projects across 11 sectors.

Transportation accounts for approximately $10.6 billion of the proposed financing, making it the largest allocation.

The government also disclosed that about $7.9 billion would come from multilateral and bilateral development partners, with the World Bank expected to provide approximately $5 billion at an average interest rate of 2.1 per cent.

Oyedele explained that the borrowing plan does not automatically mean that the entire amount will be drawn down.

He also argued that the proposed financing arrangements were structured to support long-term infrastructure investments.

Why the Borrowing Plan Is Generating Controversy

Despite the government's explanation, the proposed borrowing has generated concerns among opposition politicians, economists and public policy commentators.

One major concern is Nigeria's existing debt burden and the government's ability to repay additional loans without placing further pressure on public finances.

Critics have also questioned whether the proposed projects have sufficiently detailed public information regarding their costs, locations, contractors, implementation timelines and expected economic returns.

Former Vice President Atiku Abubakar has urged lawmakers not to approve the proposal without obtaining a detailed breakdown of the projects and their financial obligations.

The debate is particularly significant because Nigeria continues to face pressure from infrastructure deficits, unemployment, high living costs and limited government revenue.

What Happens Next?

The proposed borrowing plan is still subject to legislative consideration.

The Senate referred the request to its Committee on Local and Foreign Debts, alongside relevant committees responsible for appropriations and finance.

The House of Representatives also referred the proposal to its relevant committees for further examination.

The committees are expected to scrutinise the financing arrangements, project details and implications for Nigeria's public debt before the National Assembly determines its next steps.

The Bigger Question: Can Borrowing Improve the Lives of Nigerians?

Nigeria needs significant investment in transportation, electricity, healthcare, education and other essential sectors.

Borrowing can provide the capital required to develop these areas, particularly when the financing supports projects that generate economic activity and improve productivity.

However, the success of any borrowing programme depends on transparency, responsible spending, effective project delivery and the ability to generate sufficient economic returns.

For ordinary Nigerians, the most important issue is not simply whether the government secures billions of dollars in financing.

It is whether those funds translate into reliable electricity, better roads, accessible healthcare, improved education, employment opportunities and a lower cost of doing business.

The Tinubu administration has presented its borrowing programme as an investment in Nigeria's future. The responsibility now lies with the government and the National Assembly to demonstrate that the proposed financing will deliver measurable benefits.

Instacool will continue to follow the National Assembly's review and the government's explanation of the proposed projects.