Senate Approves Tinubu’s $6bn Loan Request

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

The approval was granted during plenary on Tuesday after lawmakers considered and adopted the report of the Senate Committee on Local and Foreign Debts.

The loan request, conveyed in two separate letters to the Senate and read by Senate President Godswill Akpabio, is aimed at supporting government financing needs and key development projects.

Breakdown of the facility shows that $5 billion is expected to come from a structured financing arrangement with First Abu Dhabi Bank, while an additional $1 billion loan is being sourced through an export credit facility arranged by Citibank in London.

According to the president, the funds will be deployed towards budget implementation, infrastructure development, and refinancing of existing domestic and external debts.

Part of the loan is also earmarked for the rehabilitation of critical port infrastructure, including the Lagos Port Complex and Tin Can Island Port, in a bid to boost trade efficiency and economic growth.

Tinubu noted that the loan would be drawn in phases to reduce pressure on Nigeria’s debt servicing obligations, while also enabling the government to meet urgent fiscal demands.

The approval reportedly came within hours of the president’s request being presented on the Senate floor, highlighting the urgency attached to the funding plan.

Nigeria’s total public debt currently stands at over $110 billion, a figure the government says requires strategic financing to sustain economic reforms and infrastructure expansion.

The development underscores the federal government’s continued reliance on external borrowing to bridge budget deficits and fund priority projects amid ongoing economic challenges.