Senate Approves $6.9 Billion "Legacy" Loan for Coastal Highway

The Nigerian Senate has officially approved President Tinubu’s request for a $6.9 billion external loan to fund "Legacy Projects" across the country. The loan, sourced from a consortium including the First Abu Dhabi Bank and the World Bank, is specifically earmarked for the completion of the Lagos-Calabar Coastal Highway and the rehabilitation of the Tin Can Island Port. The approval followed a heated debate in the Red Chamber over Nigeria’s rising debt profile, but the motion ultimately passed with a significant majority.

According to the Senate Committee on Local and Foreign Debts, 40% of the loan must be channeled directly into capital projects in the 2026 budget to ensure immediate economic impact. The President has argued that these infrastructure projects are "economic corridors" that will stimulate trade and create thousands of jobs in the construction and logistics sectors. The rehabilitation of the Lagos ports is seen as particularly urgent, as aging infrastructure has led to significant delays in the clearing of goods.

While the government views the loan as an investment in the future, civil society groups have expressed concern over the long-term cost of servicing the debt. However, proponents of the loan point to the fact that the projects are designed to be self-sustaining through tolls and increased port revenue. As the 2026 "Legacy" Budget grows to ₦68.32 trillion, the success of this borrowing strategy will be the ultimate test of the administration’s fiscal prudence and its ability to deliver on massive infrastructure promises.

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