The Senate has swiftly approved President Bola Ahmed Tinubu’s request to secure external loans totalling $6 billion, in a rapid legislative move that unfolded within hours on Tuesday.
The approval came barely three and a half hours after Senate President Godswill Akpabio read the President’s request on the floor of the chamber.
Lawmakers granted the approval following the consideration of a report presented by Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debts.
Tinubu’s borrowing plan was detailed in two separate letters to the Senate, outlining a $5 billion facility and an additional $1 billion loan for infrastructure development.
In the first correspondence, the President sought approval to establish a structured Total Return Swap (TRS) external financing programme with First Abu Dhabi Bank of the United Arab Emirates.
“The purpose of this letter is to request the approval and resolution of the National Assembly… to establish a structured total return swap (TRS) derivative external financing programme… of up to $5 billion, which will be made available to the Federal Republic of Nigeria in tranches,” Tinubu wrote.
He explained that the funds would be deployed for budget implementation, priority infrastructure projects, and refinancing of existing debts.
According to him, “the proceeds would be used for budget implementation, development of priority infrastructure projects and repayment of relatively expensive domestic and external debts,” noting that the facility would also support the government in meeting urgent financial obligations.
The President further disclosed that Nigeria’s total public debt stood at $110.3 billion—about N159.2 trillion—as of December 31, 2025, adding that the loan would be drawn in phases to ease pressure on debt servicing.
In a separate request, Tinubu sought approval for a $1 billion UK Export Finance-backed loan facility arranged by Citibank, London, to fund the rehabilitation of key port infrastructure.
He stated that the facility would be used for the reconstruction and upgrade of the Lagos Port Complex and Tin Can Island Port, critical to boosting trade and economic activity.
The Senate also approved the issuance of naira-denominated federal government securities as collateral for the loans, alongside provisions for meeting margining obligations in US dollars.
The expedited approval underscores the National Assembly’s backing of the administration’s financing strategy, even as concerns persist over Nigeria’s rising debt profile.
