Senate approves Tinubu’s $6 billion external loans – THIS

By Victor Osula, Abuja

The Senate on Tuesday approved President Bola Tinubu’s request to secure external loans totaling $6 billion to spur infrastructure development, support budget implementation and improve Nigeria’s debt management strategy.

The approval was granted after a rapid legislative process which saw the request examined and adopted a few hours after it was presented to the Upper House during the plenary chaired by Senate President Godswill Akpabio.

The decision followed the submission of a report by Senator Aliyu Wamakko (APC, Sokoto North), Chairman of the Senate Committee on Local and Foreign Debts, who recommended the approval of the loan scheme after due consideration.

President Tinubu, on Tuesday, in two separate letters, outlining the structure and destination of the proposed financing, sought approval from the National Assembly for an external loan of $6 billion.

In the first letter, the President requested approval for a Total Return Swap (TRS) structured external financing program of up to $5 billion with First Abu Dhabi Bank of the United Arab Emirates. He explained that the facility will be accessed in tranches to ensure prudent management of inflows and reduce pressure on Nigeria’s debt profile.

According to the President, the funds are intended for budget implementation, priority infrastructure projects and refinancing of existing domestic and foreign debts with higher servicing costs. He added that the agreement would also provide the government with the flexibility to meet urgent financial obligations when necessary.

Tinubu further revealed that Nigeria’s total public debt stood at $110.3 billion (about ₦159.2 trillion) as of 31 December 2025, stressing that the phased structure of the facility was designed to ease repayment pressures and improve debt sustainability.

In a second request, the President also sought approval for the issuance of naira-denominated federal government securities as collateral for the TRS Arrangement, as well as provisions for the settlement of margin obligations in US dollars.

It also applied for a $1 billion UK Export Finance loan arranged by Citibank, London Branch, aimed at the reconstruction and rehabilitation of critical port infrastructure, including the Lagos Port Complex and Tin Can Island Port.

Lawmakers, after deliberation, adopted the commission’s recommendations and granted approval to the loan plan, describing it as aligned with national development priorities and efforts to spur economic growth.

Lawmakers said the decision should provide the federal government with additional fiscal space to finance key infrastructure projects, manage debt obligations more efficiently and support ongoing economic reforms aimed at long-term stability and development.

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