From Victor Osula, Abuja
On Tuesday, the Senate approved President Bola Tinubu’s request to secure external loans totalling $6 billion to boost infrastructure development, support budget implementation, and improve Nigeria’s debt management strategy.
The approval was granted after a swift legislative process that saw the request considered and adopted within hours of presentation to the upper chamber during plenary presided over by Senate President Godswill Akpabio.
The decision followed the presentation of a report by Senator Aliyu Wamakko (APC, Sokoto North), Chairman of the Senate Committee on Local and Foreign Debts, who recommended approval for the borrowing plan after due consideration.
President Tinubu, on Tuesday, in two separate letters, outlining the structure and intended use of the proposed financing, requested the approval of the National Assembly for a $6 bn external loan.
In the first letter, the President sought approval for a structured Total Return Swap (TRS) external financing programme of up to $5 billion with First Abu Dhabi Bank of the United Arab Emirates. He explained that the facility would 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 the refinancing of existing domestic and external debts with higher servicing costs. He added that the arrangement would also provide the government with flexibility to meet urgent financial obligations when necessary.
Tinubu further disclosed that Nigeria’s total public debt stood at $110.3 billion (about ₦159.2 trillion) as of December 31, 2025, noting that the phased structure of the facility was designed to ease repayment pressures and enhance 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 United States dollars.
He also requested a $1 billion UK Export Finance loan facility arranged by Citibank, London branch, which is earmarked for the reconstruction and rehabilitation of critical port infrastructure, including the Lagos Port Complex and Tin Can Island Port.
Lawmakers, after deliberation, adopted the committee’s recommendations and granted approval for the borrowing plan, describing it as aligned with national development priorities and efforts to stimulate economic growth.
The lawmakers said the decision is expected to provide the federal government with additional fiscal room to finance key infrastructure projects, manage debt obligations more efficiently, and support ongoing economic reforms targeted at long-term stability and development.
