President Bola Tinubu’s administration is pushing Nigeria deeper into debt with a fresh request for a $347 million loan to cover cost overruns on the Lagos-Calabar Coastal Highway, a project whose price tag has mysteriously ballooned by $47 million in just months.
The revelation came Wednesday in a terse presidential letter read before the House of Representatives, marking the third major borrowing request in under two years, a trend that has economists and civil society groups sounding alarms about Nigeria’s fiscal health.
At the heart of the controversy is the 700-kilometer coastal highway, initially budgeted at $700 million. President Tinubu’s letter cited “revised funding requirements” for the $47 million spike but provided no detailed breakdown, an omission that has raised eyebrows among fiscal watchdogs.
The House has handed the request to its Joint Committee on Finance and Debt Management, but lawmakers face mounting pressure to demand accountability rather than rubber-stamp another loan.
This latest request fits a troubling pattern: November 2023: $7.8 billion + €100 million approved for “critical infrastructure” . March 2025: $21.5 billion external loan and ₦757.9 billion domestic bond cleared for pension liabilities. Total Debt: ₦121 trillion ($91 billion) as of Q1 2025—a 23% surge since Tinubu took office
The Debt Management Office (DMO) insists Nigeria’s debt-to-GDP ratio remains “manageable” at 38%, but the International Monetary Fund has repeatedly flagged rising debt servicing costs, which now consume over 30% of federal revenue.
Presidential aides argue the coastal highway will revolutionize transport, linking nine states and creating 50,000 jobs.
Yet critics counter that Nigeria’s infrastructure gaps persist despite decades of borrowing.
The House committee has 14 days to review the loan’s terms. Key questions include: Why did the highway’s cost increase? What safeguards prevent further overruns? How will Nigeria repay without oil price windfalls?
As the naira continues its slide against the dollar, analysts warn that foreign-denominated debts grow heavier by the day. The Tinubu administration’s ability to balance growth with fiscal responsibility now faces its sternest test yet.
