Tinubu Seeks Reps’ Approval for ₦10.8trn Fresh Loans as NLC President Ajaero Questions Borrowing

President Bola Tinubu has sought the approval of the House of Representatives to secure ₦10.8 trillion in fresh external loans under the 2026 Appropriations Act, citing the need to finance major infrastructure projects across the country.

Defending the proposed borrowing, Tinubu argued that the focus should be on the economic value and long-term benefits of the projects rather than the amount being borrowed.

“The key question is not how much we borrow, but what we build, the value we create and the future we leave behind,” the President said.

The proposed projects include the construction of three superhighways, improvements to the national electricity grid and the upgrading of Lagos ports.

Tinubu said the Lagos-Calabar Coastal Highway project could reduce transportation costs by between 15 and 20 per cent while generating about 250,000 direct and indirect jobs.

“We cannot build a $1 trillion economy with infrastructure designed for an economy a fraction of that size,” he added.

The President also cited Nigeria’s reported 4.43 per cent Gross Domestic Product (GDP) growth in the second quarter of 2026 and a decline in inflation to 14.63 per cent in September as evidence of improving economic conditions.

However, he acknowledged the country’s debt burden, admitting that debt servicing consumed approximately 65 per cent of government revenue in the first half of 2026.

The proposed borrowing has, however, attracted criticism from the Nigeria Labour Congress (NLC), with its President, Joe Ajaero, questioning the justification for continued foreign loans despite the Federal Government’s claims of increased revenue following the removal of petrol subsidy.

Speaking on Channels Television’s The Morning Brief, Ajaero questioned why the government continued to approach international financial institutions for loans when, according to him, sufficient revenue was available.

“What is the justification for continually borrowing from the International Monetary Fund and the World Bank and other agencies when there is enough money?” he asked.

Ajaero also questioned the need for additional borrowing in view of rising international crude oil prices, which he said had reportedly exceeded the 2026 budget benchmark of $70 per barrel.

“If the 2026 budget was prepared with crude oil price benchmarked at $70 per barrel and now sells above $100 per barrel due to the US-Iran crisis, should this country still be taking loans?” he queried.

The NLC president urged Nigerians to demand accountability from the Federal Government, stressing that the labour union had no constitutional authority to approve or reject government borrowing proposals.

Tinubu, however, maintained that the success of the proposed loans would ultimately depend on the completion of projects, transparency in expenditure and tangible improvements in the lives of Nigerians.

“Securing financing is only the beginning. The real achievement lies in completing projects, delivering value for money, and improving Nigerians’ lives,” he said.