The Nigerian Senate has approved a request by President Bola Tinubu to secure a total of $6 billion in external loans, just hours after the proposal was presented during plenary on Tuesday.

 

The swift approval followed the consideration of a report presented by Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debts. The request had earlier been conveyed through two separate letters read on the floor by Senate President Godswill Akpabio.

 

In the first request, Tinubu sought approval for a $5 billion structured Total Return Swap (TRS) external financing programme with First Abu Dhabi Bank. He explained that the facility would be drawn in tranches and used to support budget implementation, fund key infrastructure projects, and refinance existing domestic and external debts.

 

The President noted that the request aligns with provisions of the Debt Management Office Establishment Act 2003, adding that the phased drawdown would help manage pressure on Nigeria’s debt stock and servicing obligations. He disclosed that the country’s total public debt stood at $110.3 billion (about N159.2 trillion) as of December 31, 2025.

 

In a separate request, Tinubu asked the Senate to approve a $1 billion loan under UK Export Finance, arranged by Citibank. The facility is expected to fund the reconstruction and rehabilitation of key maritime infrastructure, including the Lagos Port Complex and Tin Can Island Port.

 

The President also sought approval to use naira-denominated federal government securities as collateral for the loan, as well as to meet margin obligations in US dollars.

 

The approval underscores the government’s push to secure external financing to address fiscal needs, infrastructure deficits, and debt management challenges amid growing economic pressures.