Labour Party's Agbese backs Tinubu's $21.7bn borrowing plan

A Labour Party lawmaker, Philip Agbese, has backed President Bola Tinubu's proposed $21.7 billion external borrowing plan, arguing that the money would go into roads, rail, power and security rather than everyday spending.

Agbese represents the Ado/Okpokwu/Ogbadibo Federal Constituency in Benue State and leads the Labour Party in the state. His support puts him at odds with other opposition figures who have criticised the request.

According to Daily Post, the President asked the National Assembly on Tuesday to approve fresh external loans of $20.5 billion and €1.04 billion to fund critical projects.

Why he supports it

Agbese said more than $10 billion of the package is set aside for transport infrastructure, including the Lagos-Calabar Coastal Highway, the Sokoto-Badagry Super Highway and major rail corridors.

"This is not borrowing for the sake of borrowing. It is investment in the future of Nigeria," he said.

He also pointed to the security allocation, saying any serious government must equip its armed forces. He cited what he described as operational gains, including the rescue of abducted citizens, and said continued funding was needed to hold on to them.

On infrastructure, the lawmaker listed the Abuja-Kaduna-Zaria-Kano highway, early sections of the Lagos-Calabar Coastal Highway and approvals for East and West Super Grids to boost electricity transmission.

He said a sizeable share of the money is earmarked for states and the Federal Capital Territory, and that much of it would come from multilateral and bilateral partners at concessional rates, with commercial loans on competitive terms.

Agbese also argued that reforms such as the removal of the petrol subsidy had created room for the government to spend on infrastructure.

"Every progressive country borrows to build. What matters is whether the money creates lasting assets and strengthens national security. On both counts, this plan passes the test," he said.

He urged his colleagues across party lines to put national interest first when the request comes before the National Assembly.

The opposition pushback

Not everyone in the opposition agrees. Daily Post reported that Atiku Abubakar, the African Democratic Congress presidential candidate, described the loan move as a plan to set up slush funds for the 2027 election campaigns. Peter Obi of the Nigeria Democratic Congress has also criticised it.

Agbese dismissed such criticism as political, saying opponents were focused on the headline figure without looking at the projects or the financing terms.

For ordinary Nigerians, the debate matters because the loans would add to the country's debt, and repayment will come from public funds. Supporters say the projects could ease travel, improve power supply and create jobs; critics worry about how the money is spent.

What happens next

The request now rests with the National Assembly, which must approve it. How lawmakers from both parties vote will decide whether the borrowing goes ahead.