Nigeria Approves Massive $21 Billion Foreign Loan to Fund Infrastructure and Budget Gaps

Nigeria's Senate and House of Representatives have approved President Bola Tinubu's request for over $21 billion in external loans to finance the 2025–2026 budget and critical infrastructure projects. The borrowing plan includes significant allocations for the Lagos-Calabar Coastal Highway, Eastern Rail Line reconstruction, telecoms, and the power sector. An additional $347 million loan was specifically requested for the Lagos-Calabar highway and telecom projects. While the government argues these loans are necessary for national development, analysts warn that Nigeria's debt burden will rise, raising concerns about long-term sustainability and repayment. The move underscores the government's focus on infrastructure but also highlights ongoing fiscal challenges.