The Senate has swiftly approved President Bola Tinubu’s request to secure about $6 billion in external loans, granting the approval just hours after the proposal was presented during plenary on Tuesday.
The approval came barely three and a half hours after the President of the Senate, Godswill Akpabio, read two separate letters from the president seeking legislative backing for the facilities. The speed of the decision followed the presentation and consideration of a report by Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debts.
In the first communication, Tinubu requested 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. He explained that the facility would be disbursed in tranches.
“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 president stated.
He said the funds would support budget implementation, priority infrastructure projects, and the refinancing of existing debts. According to him, the facility would also help the federal government meet urgent financial obligations when necessary.
Tinubu added that Nigeria’s total public debt stood at $110.3 billion, equivalent to about N159.2 trillion as of December 31, 2025. He noted that drawing the loan in phases would reduce pressure on the country’s debt stock and servicing obligations.
In a second letter, the president sought approval for additional financing arrangements, including the issuance of naira-denominated federal government securities as collateral for the facility and the payment of margining obligations in US dollars.
He also requested approval for a $1 billion UK export finance loan facility arranged by Citibank’s London branch. The proposed loan is targeted at the reconstruction and rehabilitation of the Lagos Port Complex and Tin Can Island Port.
The request forms part of the administration’s broader financing strategy aimed at stabilising public finances, improving infrastructure, and managing existing debt exposure through structured external borrowing mechanisms.
Details later…
