ENUGU, Nigeria (VOICE OF NAIJA)- The Senate on Tuesday approved President Bola Ahmed Tinubu’s request to secure external loans totalling $6 billion, granting the approval barely three and a half hours after the proposal was formally presented.
The swift decision followed the reading of two separate letters from the President by Senate President Godswill Akpabio during plenary, seeking legislative backing for the borrowing plan.
Lawmakers gave the nod after considering a report presented by Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debts.
In the first request, Tinubu sought approval to establish a structured total return swap (TRS) external financing programme of up to $5 billion with First Abu Dhabi Bank of the United Arab Emirates.
According to the President, the facility would be accessed in tranches and deployed toward budget implementation, priority infrastructure development, and refinancing of existing high-cost domestic and external debts.
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“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 in tranches,” the letter read.
Tinubu noted that the phased drawdown would help ease pressure on Nigeria’s debt burden, which he put at $110.3 billion, equivalent to about N159.2 trillion as of December 31, 2025.
He added that the facility would also enable the Federal Government meet urgent financial obligations when necessary.
In the second request, the President asked the Senate to approve a $1 billion loan facility from UK Export Finance, arranged by Citibank’s London branch, to fund the reconstruction and rehabilitation of the Lagos Port Complex and Tin Can Island Port.
He also sought approval for the issuance of naira-denominated federal government securities as collateral for the financing arrangement, as well as the settlement of margin obligations in US dollars.
With the approval, the Federal Government of Nigeria is expected to proceed with the borrowing plan as part of efforts to stabilise public finances and fund critical infrastructure projects.