A member of the House of Representatives, Philip Agbese, has defended President Bola Tinubu’s proposed $21.7 billion external borrowing plan, arguing that the loans are necessary to finance critical infrastructure and strengthen national security.
The President recently sought National Assembly approval for fresh external loans amounting to $20.5 billion and €1.04 billion, a move that has drawn criticism from opposition figures and generated concerns over Nigeria’s growing debt burden.
Among the critics are leading opposition politicians who have questioned the necessity of additional borrowing and raised concerns about the management of the funds.
However, Agbese, who represents Ado/Okpokwu/Ogbadibo Federal Constituency in Benue State and is a Labour Party leader in the state, disagreed with the criticisms, insisting that the borrowing proposal is designed to support long-term national development.
According to him, the loans are intended for productive investments rather than recurrent spending, with substantial allocations earmarked for transportation, power and security projects.
“This is not borrowing for the sake of borrowing. It is investment in the future of Nigeria,” Agbese said.
He noted that more than $10 billion of the proposed funding is expected to go into transport infrastructure, including projects such as the Lagos-Calabar Coastal Highway, the Sokoto-Badagry Super Highway, and key rail development initiatives.
The lawmaker argued that such projects would create long-term economic value that would outweigh the cost of the loans.
“The same applies to the significant portion dedicated to defence and security. Any serious nation prioritises the safety of its citizens,” he added.
Agbese pointed to ongoing infrastructure projects, including sections of the Abuja-Kaduna-Zaria-Kano Highway and the Lagos-Calabar Coastal Highway, as evidence that government spending on major projects is yielding visible results.
He also highlighted developments in the power sector, including investments aimed at increasing electricity transmission capacity through new grid infrastructure.
According to him, states and the Federal Capital Territory are also expected to benefit from the borrowing package, with part of the funds allocated to subnational projects under concessional financing arrangements.
“Look at what has been achieved in just over three years: major highways moving from paper to asphalt and concrete, rail lines advancing, and power infrastructure receiving the attention it has long been denied. That is why the borrowing is justified,” he said.
On security, Agbese maintained that continued investment is necessary to sustain gains recorded by the armed forces in tackling terrorism, banditry and kidnapping across the country.
He further argued that a significant share of the proposed borrowing would come from multilateral and bilateral lenders on favourable terms, while commercial loans would be secured under competitive market conditions.
The lawmaker urged Nigerians to assess the proposal based on its economic and developmental impact rather than partisan considerations, stressing that closing the country's infrastructure gap remains essential for sustainable growth and improved living standards.
He also called on members of the National Assembly to support the borrowing request when it comes up for legislative consideration.