EXCLUSIVE: Senate Approves $700Million For Lagos-Calabar Coastal Road, $100Million For Youth Entrepreneurship Project In $21Billion Loan Plan

On Tuesday, the Nigerian Senate approved President Bola Tinubu’s sweeping request for external borrowing totalling more than $21 billion to fund key development initiatives over the 2025–2026 fiscal period. 

The Senate said the massive borrowing plan is aimed at supporting national projects across sectors such as infrastructure, agriculture, security, and human capital development.

The approval came after a long-delayed report by the Senate Committee on Local and Foreign Debt, chaired by Senator Aliyu Wamako, was finally presented during plenary in Abuja. 

The report was first introduced on May 27, 2025, but its consideration was stalled by a combination of legislative recesses and bureaucratic delays, especially in obtaining documents from the Debt Management Office (DMO).

The borrowing plan includes $21.19 billion in direct foreign loans, €4 billion in euros, ¥15 billion in Japanese yen, and a $65 million grant. 

In addition, it allows for domestic borrowing of up to ₦757 billion through government bonds, as well as capital raising of up to $2 billion via foreign-currency-denominated instruments within Nigeria’s local market.

Documents exclusively obtained by SaharaReporters show that the loans are tied to several high-profile and diverse projects. 

For example, the African Development Bank is expected to provide $100 million for a Youth Entrepreneurship Investment project with a five-year implementation period. Another $45 million, with non-negotiated terms and conditions, has been earmarked for the Sokoto State Health Infrastructure Project, while $50 million will go to Yobe State’s Integrated Climate Action Project.

Under arrangements with the Export Credit Agency, $250 million will be used to fund the Lekki Access Road — also known as the 7th Axial Road Project — with a timeline of three years. 

An additional $540 million is designated for the Nigeria Border Security Project under the second phase of a broader national security initiative. The ambitious Lagos-Calabar Coastal Highway project is also set to receive $700 million.

Japan’s International Cooperation Agency (JICA) will extend a ¥150 billion loan for an emergency food security programme, which is expected to be completed within a year.

China remains a significant source of financing under this plan. A $400 million loan will also go toward the Lekki Access Road project. Meanwhile, $1.33 billion is allocated for the construction of the Akwanga–Jos–Bauchi–Gombe dual carriageway, with a four-year completion horizon. Two separate allocations — $1.14 billion and $1.07 billion — will fund the Eastern and Western Super Grids respectively.

Other Chinese-backed projects include $100 million for the Presidential Power Initiative aimed at improving electricity distribution infrastructure, and $116 million for high-voltage transmission lines to evacuate 700 megawatts of electricity from the Zungeru hydropower station. 

Additionally, $508 million will go to modernising Nigeria’s eastern port infrastructure, $2 billion for the Lagos Green Line Rail Project, and $596.2 million for the procurement of rolling stock on the Kaduna–Kano section of the national rail modernisation effort.

In the document obtained by SaharaReporters, it was noted that the National Assembly had requested additional information regarding the loan proposal. These included the details of the funding agencies involved and the stage of negotiations with each agency for every facility, as well as a detailed explanation of the projects and programs listed under the 2025–2026 Borrowing Plan, including their cost and breakdown.

Other requested details encompassed the cost-benefit analysis, economic and impact projections of the loan, and the funding status of ongoing projects. This also included the status of disbursements, especially in cases where previous loans had been procured and were part of the 2025–2026 Borrowing Plan.

During Tuesday’s plenary, the Chairman of the Senate Committee on Appropriations, Senator Olamilekan Solomon (Ogun West), described the approval as largely procedural. He explained that many of the listed items had already been captured in the Medium-Term Expenditure Framework (MTEF) and the 2025 Budget previously passed by the Senate.

Despite the procedural framing, the decision generated a mix of support and concern among lawmakers.

Senator Sani Musa (Niger East) clarified that the borrowing plan spans a six-year disbursement period, not solely the 2025 fiscal year. He also noted that Nigeria has not defaulted on any of its existing loan repayments.

Also speaking, Senator Adetokunbo Abiru (Lagos East), Chairman of the Senate Committee on Banking, Insurance and Other Financial Institutions, assured the Senate that the borrowing plan is in line with the provisions of the Fiscal Responsibility Act and the Debt Management Act. He stressed that all borrowed funds are earmarked strictly for capital projects and human development.

However, concerns were raised by Senator Abdul Ningi (Bauchi Central), who questioned the transparency and accountability of the plan. He pointed to the absence of a detailed breakdown specifying how much each state or agency would receive, and how the loans are expected to be repaid.

“We need to tell our constituents exactly how much is being borrowed in their name, and for what purpose,” Ningi said, referencing constitutional provisions governing legislative oversight of public borrowing.

According to the plan, the borrowed funds will support critical national infrastructure, including: “Railways (notably the Eastern Rail Line from Port Harcourt to Maiduguri), Power plants and digital connectivity, Security operations, Agriculture and housing projects.”

Senator Victor Umeh (Anambra Central) threw his weight behind the plan, expressing satisfaction with the long-awaited investment in southeastern infrastructure.

“This is the first time I’ve seen $3 billion allocated to rebuild the eastern rail line. That alone justifies my full support,” he said.

Earlier in July, the Nigerian government said it had secured a $747m syndicated loan for the construction of the Lagos-Calabar Coastal Highway, marking what officials describe as a major milestone in Nigeria’s infrastructure financing.

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