Senate Rapidly Approves President Tinubu’s $6 Billion External Loan Request

Nigeria’s Senate has swiftly approved President Bola Tinubu’s request for $6 billion in external loans, in a move aimed at funding infrastructure, managing debt, and meeting urgent federal obligations. The approval came just three and a half hours after Senate President Godswill Akpabio read the president’s letters during plenary on Tuesday.

Structured Financing and Priority Projects

The loans, presented by Senator Aliyu Wamakko, APC, Chairman of the Senate Committee on Local and Foreign Debts, consist of two key facilities:

• $5 billion total return swap (TRS) with First Abu Dhabi Bank (UAE), to be disbursed in tranches for budget implementation, development of priority infrastructure, and repayment of high-interest domestic and foreign debt.
• $1 billion UK Export Finance loan, arranged through Citibank London, designated for the reconstruction and rehabilitation of Lagos Port Complex and Tin Can Island Port.

President Tinubu emphasized that the loan drawdown will be phased, ensuring that Nigeria’s debt stock and servicing obligations remain manageable. As of December 31, 2025, Nigeria’s total public debt stands at approximately $110.3 billion (N159.2 trillion).

Legal and Procedural Framework

The president cited the Debt Management Office Establishment Act 2003, seeking Senate approval to issue naira-denominated federal government securities as collateral and to meet margining obligations in US dollars. The structured TRS programme is expected to provide flexibility for urgent financial requirements while supporting long-term infrastructure development.

Implications for Nigeria’s Economy

Economists say the approval signals a government push to accelerate critical infrastructure, reduce high-cost debt, and strengthen fiscal capacity. However, critics caution that external borrowing must be closely managed to avoid exacerbating the country’s debt burden.

With the Senate’s rapid endorsement, the government now has a green light to mobilize significant international financing, reinforcing efforts to modernize ports, improve logistics, and support Nigeria’s economic growth agenda.