Senate Approves Tinubu’s $6Billion Loan Request Amid $110.3Billion Debt
On Tuesday Nigerian Senate approved a request by President Bola Ahmed Tinubu to obtain external loans totalling $6 billion, barely three and a half hours after the request was formally presented on the floor of the upper legislative chamber.
The approval followed the reading of the president’s request by Senate President Godswill Akpabio during plenary and the immediate consideration of a report by the Senate Committee on Local and Foreign Debts.
The committee, chaired by Senator Aliyu Wamakko (APC, Sokoto North), recommended the approval of the borrowing plan after reviewing the details contained in the president’s communication.
Earlier during Tuesday’s plenary, Akpabio read two separate letters from President Tinubu requesting the approval of the National Assembly to secure the external financing facilities.
In the first letter, the president sought approval to establish a structured total return swap (TRS) external financing programme of up to $5 billion with First Abu Dhabi Bank of the United Arab Emirates.
According to the president, the facility would be provided to Nigeria in tranches and would serve as a financing mechanism to support government obligations.
“The purpose of this letter is to request the approval and resolution of the National Assembly pursuant to the provisions of section 21(1) and 27(1) of the Debt Management Office Establishment Act 2003 to establish a structured total return swap (TRS) derivative external financing programme from First Abu Dhabi Bank of the United Arab Emirates of up to $5 billion, which will be made available to the Federal Republic of Nigeria in tranches,” Tinubu wrote in the letter.
The president explained that the proceeds from the facility would be deployed for budget implementation, development of priority infrastructure projects and repayment of relatively expensive domestic and external debts.
Tinubu further stated that the financing would also help the federal government meet urgent financial obligations whenever necessary.
Providing details about the country’s debt profile, the president disclosed that Nigeria’s total public debt currently stands at $110.3 billion, equivalent to about N159.2 trillion as of December 31, 2025.
He noted that the borrowing would be structured in phases in order to avoid excessive pressure on the country’s debt stock and servicing obligations.
In the second letter, the president asked the Senate to also approve the issuance of naira-denominated Federal Government securities as collateral for the facility as well as the payment of margining obligations in United States dollars.
Tinubu also requested approval for an additional $1 billion loan facility from the United Kingdom’s export finance system, which is being arranged through the London branch of Citibank.
According to the president, the loan will be specifically used to finance the reconstruction and rehabilitation of two of Nigeria’s busiest maritime gateways, the Lagos Port Complex and the Tin Can Island Port.
