The Nigerian Senate has swiftly approved President Bola Tinubu’s request to secure external loans totaling $6 billion. The approval came just three and a half hours after Senate President Godswill Akpabio read out the president’s letters seeking legislative consent.
The request was considered following a presentation by Senator Aliyu Wamakko (APC, Sokoto North), Chairman of the Senate Committee on Local and Foreign Debts, who outlined the details of the proposed borrowing.
President Tinubu’s loan request was submitted in two separate letters. In the first, he sought approval for a structured total return swap (TRS) external financing program of up to $5 billion with First Abu Dhabi Bank of the United Arab Emirates. The president noted that the funds would be disbursed in tranches and would serve multiple purposes, including budget implementation, financing priority infrastructure projects, and refinancing existing high-cost domestic and external debts. He emphasized that drawing the loan in phases would help manage Nigeria’s total public debt, which currently stands at $110.3 billion (approximately N159.2 trillion) as of December 31, 2025, and ease pressure on debt servicing obligations.
The second letter requested authorization for a $1 billion UK Export Finance loan facility arranged by Citibank, London. The president indicated that this facility would fund the reconstruction and rehabilitation of key maritime infrastructure, specifically the Lagos Port Complex and Tin Can Island Port. Additionally, Tinubu sought the Senate’s approval to issue naira-denominated federal government securities as collateral for both loan arrangements and to facilitate the payment of margining obligations in U.S. dollars.
The Senate’s prompt approval reflects the urgency placed on accessing these external funds to support national development and address critical financial obligations. By enabling Nigeria to secure financing through both the TRS program and the UK export finance facility, the government aims to accelerate infrastructure development, improve port operations, and optimize debt management strategies.
This legislative endorsement allows the federal government to implement these financial strategies while carefully managing the country’s overall debt exposure, ensuring funds are used effectively for both development priorities and the refinancing of costlier existing obligations.
