Tinubu seeks senate approval for $6bn external loans

President Bola Tinubu has asked the Senate to approve plans by the Federal Government to borrow about $6 billion from international financial institutions to support budget financing and infrastructure development.

The request was contained in two separate letters addressed to the President of the Senate, Senator Godswill Akpabio, which were read during Tuesday’s plenary session.

In the first letter, the President sought approval to obtain a $5 billion loan from Abu Dhabi Bank to help bridge the country’s budget deficit and support debt financing obligations.

According to the letter, the facility forms part of the government’s strategy to address fiscal gaps while sustaining key public expenditure commitments.

In a second request, Tinubu asked lawmakers to approve a $1 billion UK Export Finance (UKEF) loan facility from Citi Bank in London for the rehabilitation and upgrade of major port infrastructure.

The proposed project will focus on the Lagos Port Complex and Tin Can Island Port, two of the country’s busiest maritime gateways.

The President said the initiative is aimed at addressing critical infrastructure deficiencies in the port system, improving operational efficiency, enhancing safety standards and supporting the diversification of Nigeria’s economy through increased non-oil trade.

He added that the rehabilitation would also help position Nigeria as a major regional trade hub.

Following the presentation of the requests, Senate President Godswill Akpabio referred the letters to the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko, for further legislative consideration.

The committee was mandated to examine the requests and report back to the Senate for possible approval.