Senate Approves Tinubu’s $6 Billion Loan Request

The Nigerian Senate has swiftly approved President Bola Tinubu’s request to secure external loans amounting to $6 billion, with the approval coming just three and a half hours after Senate President Godswill Akpabio read the presidential letter to the chamber.

The loans were greenlit following the presentation and consideration of a committee report by Senator Aliyu Wamakko, APC, Sokoto North, who chairs the Senate Committee on Local and Foreign Debts.

The borrowing request had arrived via two separate letters addressed to Senate President Akpabio, both of which were read during Tuesday’s plenary session.

The first letter sought legislative approval to establish a structured total return swap (TRS) external financing arrangement worth up to $5 billion with First Abu Dhabi Bank of the United Arab Emirates.

Related: Federal Government Postpones Students Loan Scheme

In that letter, President Tinubu stated: “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.”

The president indicated the funds would be deployed in tranches and directed toward budget implementation, development of priority infrastructure projects, and the settlement of relatively expensive domestic and external debts.

He added that the facility would also give the federal government the flexibility to meet urgent financial obligations as they arise.

Tinubu further disclosed that Nigeria’s total public debt currently stands at $110.3 billion — equivalent to approximately N159.2 trillion as of December 31, 2025.

The second letter requested Senate approval for the issuance of naira-denominated federal government securities as collateral for the facility, along with authorization to meet margining obligations in US dollars.

It also sought approval for a separate $1 billion UK export finance loan facility arranged through Citibank’s London branch, with the proceeds earmarked for the reconstruction and rehabilitation of the Lagos Port Complex and Tin Can Island Port.