Senate Approves Tinubu’s $6bn External Loan Request

The Senate has approved President Bola Tinubu’s request to obtain external loans totaling $6 billion.

The decision followed the presentation and adoption of a report by Aliyu Wamakko, chairman of the Senate Committee on Local and Foreign Debts.

The request was outlined in two letters sent to the Senate and read during plenary.

In the first, Tinubu sought approval to establish a structured total return swap financing programme of up to $5 billion with First Abu Dhabi Bank. The president said the facility would be disbursed in phases to support budget implementation, finance priority infrastructure projects, and refinance existing domestic and external debts. He added that the funding would also address immediate fiscal obligations.

Tinubu stated that Nigeria’s total public debt stood at $110.3 billion, or about N159.2 trillion, as of December 31, 2025. He said drawing down the loan in tranches would help reduce pressure on debt servicing.

The president also requested approval to issue naira-denominated federal government securities as collateral for the facility, along with provisions for margin payments in U.S. dollars.

In a separate request, Tinubu sought and obtained approval for a $1 billion export finance facility from the United Kingdom, arranged by Citibank. The funds are intended for the reconstruction and rehabilitation of the Lagos Port Complex and Tin Can Island Port.