The Digest:
President Bola Tinubu has requested approval from Nigeria’s National Assembly for an additional $347 million external loan to cover rising costs for key infrastructure projects. This includes $47 million for the Lagos-Calabar Coastal Highway and $300 million for the Nigerian Universal Communications Access Project, aimed at bridging the digital divide.
Key Points:
- The Lagos-Calabar project cost has risen by $47 million, increasing the budget from $700 million to $747 million.
- The government needs the extra funding to complete the financing arrangement for the road project.
- $300 million is required for expanding telecommunications infrastructure in underserved areas, covering 7,000 towers.
- The funding shortfall was due to the omission of the telecom project in the initial borrowing plan.
- The National Assembly approved the revised borrowing plan, now totaling $21.89 billion.
- The government assures that Nigeria’s debt remains sustainable, with a manageable debt-to-GDP ratio of 50%.
- Anticipated revenue gains from the Nigerian Tax Act 2025 are expected to reduce the risk of debt distress and ensure future debt servicing.
With this loan approval, the government aims to enhance infrastructure and connectivity across the country while managing fiscal health and servicing new debt commitments.
Sources: TheCable, National Assembly Reports
