President Bola Tinubu is seeking another ₦10.8 trillion in external loans, but the Nigeria Labour Congress (NLC) has questioned the move.
The proposed borrowing has sparked fresh concerns over Nigeria’s rising debt and the government’s spending plans.
While Tinubu says the loans will fund major infrastructure projects, NLC President Joe Ajaero wants answers about the need for more borrowing.
Tinubu is seeking approval for the loans under the 2026 Appropriations Act.
Defending the proposal, the President argued that borrowing should be judged by the projects it delivers.
“The key question is not how much we borrow, but what we build, the value we create and the future we leave behind.”
The proposed projects include three superhighways, electricity grid upgrades and improvements to Lagos ports.
Tinubu said the Lagos-Calabar Highway could reduce transport costs by 15 to 20 per cent.
He also projected that the project could create 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 pointed to economic improvements, including 4.43 per cent GDP growth in the second quarter of 2026.
He said inflation had also dropped to 14.63 per cent in September.
However, Tinubu acknowledged that debt servicing consumed about 65 per cent of government revenue during the first half of 2026.
Meanwhile, Ajaero questioned why Nigeria still needs foreign loans despite claims of increased government revenue following petrol subsidy removal.
Speaking on Channels Television’s The Morning Brief, he asked:
“What is the justification for continually borrowing from the International Monetary Fund and the World Bank and other agencies when there is enough money?”
Ajaero also questioned the proposed borrowing amid rising crude oil prices.
Nigeria’s 2026 budget used a $70-per-barrel oil benchmark, while crude prices reportedly climbed above $100.
He asked whether the higher prices should reduce the country’s need for additional loans.
“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 asked.
The labour leader urged Nigerians to demand accountability, while noting that the NLC cannot approve or reject government borrowing.
Tinubu maintained that the success of the ₦10.8 trillion external loan would depend on completed projects and benefits to citizens.
“Securing financing is only the beginning. The real achievement lies in completing projects, delivering value for money, and improving Nigerians’ lives.”
