Senate approves Tinubu’s $6bn external borrowing request

The Nigerian Senate has approved President Bola Tinubu’s request to secure $6 billion in external loans, a move aimed at supporting budget implementation and funding key national infrastructure projects.

The approval followed the presentation of the President’s request during Tuesday’s plenary by Senate President Godswill Akpabio, who read two separate letters from Tinubu seeking legislative backing for the borrowing plan.

The request forms part of the Federal Government’s 2025–2026 External Borrowing Plan, designed to address budget shortfalls and finance priority development projects.

Lawmakers granted approval less than four hours after the letters were presented on the floor of the Senate.

The decision came after the chamber considered and adopted a report presented by Senator Aliyu Wamakko (APC, Sokoto North), Chairman of the Senate Committee on Local and Foreign Debts.

In the first letter, President Tinubu sought approval to establish a structured total return swap (TRS) external financing programme of up to $5 billion with the First Abu Dhabi Bank of the United Arab Emirates.

According to the President, the financing facility will be made available to Nigeria in tranches.

Tinubu explained that the request was made pursuant to Sections 21(1) and 27(1) of the Debt Management Office Establishment Act, 2003.

“The purpose of this letter is to request the approval and resolution of the National Assembly to establish a structured total return swap (TRS) derivative external financing programme from First Abu Dhabi Bank of the United Arab Emirates of up to $5 billion, which will be made available to the Federal Republic of Nigeria in tranches,” the President stated.

He noted that the proceeds from the facility would be used for budget implementation, development of priority infrastructure projects, and refinancing of relatively expensive domestic and external debts.

Tinubu added that the loan would also enable the Federal Government to meet urgent financial obligations when necessary.

The President disclosed that Nigeria’s total public debt stood at $110.3 billion, equivalent to about ₦159.2 trillion as of December 31, 2025, adding that the loan would be drawn gradually to reduce pressure on the country’s debt profile and servicing obligations.

In a second letter, Tinubu also requested Senate approval for the issuance of naira-denominated Federal Government securities as collateral for the facility, as well as the payment of margining obligations in US dollars.

He further sought legislative backing for a $1 billion UK Export Finance loan facility arranged by Citibank, London, which will be used for the reconstruction and rehabilitation of the Lagos Port Complex and Tin Can Island Port.

The Federal Government said the port rehabilitation project is expected to improve operational efficiency, enhance safety standards and boost Nigeria’s capacity for international trade.