Senate Approves Tinubu’s $6bn External Loan Request

Senate Approves Tinubu’s $6bn External Loan Request

The Senate has approved President Bola Ahmed Tinubu’s request to secure external loans totalling $6 billion.

The approval followed the consideration of a report presented by Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debts, during plenary on Tuesday.

The request, contained in two separate letters addressed to the Senate, includes a proposal to establish a structured Total Return Swap (TRS) external financing programme of up to $5 billion with First Abu Dhabi Bank.

According to the president, the facility will be disbursed in tranches and used to support budget implementation, finance priority infrastructure projects, and refinance existing domestic and external debts. He added that the funds would also help the federal government meet urgent financial obligations.

Tinubu noted that Nigeria’s total public debt stood at $110.3 billion (about N159.2 trillion) as of December 31, 2025, explaining that the phased drawdown of the loan would help reduce pressure on debt servicing.

In a separate request, the president also sought approval for the issuance of naira-denominated federal government securities as collateral for the facility, as well as the payment of margin obligations in U.S. dollars.

Additionally, the Senate approved a $1 billion export finance facility from the United Kingdom, arranged by Citibank, to support the reconstruction and rehabilitation of the Lagos Port Complex and Tin Can Island Port.