Senate Gives Green Light to Tinubu's Bid for $6 Billion in Foreign Financing

The Senate has swiftly given its stamp of approval to a request by President Bola Tinubu to secure external loans totaling $6 billion, a move that came just three and a half hours after the Senate President, Godswill Akpabio, presented the president's letter to the assembly.

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This rapid approval was made possible after Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debts, presented a report to the Senate, which was subsequently considered and approved.

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President Tinubu's loan request was outlined in two separate letters addressed to Senate President Godswill Akpabio, both of which were read during a plenary session on Tuesday.

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The first letter, read by Akpabio, concerned a proposed $5 billion structured total return swap external financing programme with First Abu Dhabi Bank of the United Arab Emirates, which would be made available to Nigeria in tranches.

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According to President Tinubu, the primary objective of this facility is to facilitate budget implementation, develop priority infrastructure projects, and repay relatively expensive domestic and external debts, while also enabling the federal government to meet urgent financial obligations as needed.

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The president noted that Nigeria's total public debt currently stands at $110.3 billion, equivalent to approximately N159.2 trillion as of December 31, 2025, and emphasized that the loan would be drawn in phases to minimize pressure on the country's debt stock and servicing obligations.

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In a second letter, President Tinubu also sought Senate approval for the issuance of naira-denominated federal government securities as collateral for the facility and the payment of margining obligations in US dollars.

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Additionally, the president requested approval for a $1 billion UK export finance loan facility, arranged by Citibank's London branch, which would be utilized for the reconstruction and rehabilitation of the Lagos Port Complex and Tin Can Island Port.