The Nigerian Senate has approved President Bola Ahmed Tinubu’s request to obtain external loans totalling $6 billion, concluding its deliberations just hours after the proposal was presented.
The approval followed the consideration of a report by the Senate Committee on Local and Foreign Debts, chaired by Aliyu Wamakko, shortly after the request was formally read on the floor by Senate President Godswill Akpabio.
Tinubu’s request was conveyed in two separate letters seeking legislative backing for the proposed borrowings. In the first, the President asked for approval to establish a $5 billion structured Total Return Swap (TRS) external financing programme with First Abu Dhabi Bank.
According to the President, the facility will be accessed in tranches and deployed towards budget implementation, critical infrastructure development, and refinancing of existing domestic and external debts. He noted that the arrangement would also provide flexibility for the government to meet urgent financial obligations.
“The purpose of this letter is to request the approval… to establish a structured total return swap (TRS) derivative external financing programme… of up to $5 billion,” Tinubu stated.
In a separate request, the President sought approval for an additional $1 billion loan facility backed by UK export finance and arranged through Citibank’s London branch. The fund is earmarked for the rehabilitation of key port infrastructure, including the Lagos Port Complex and Tin Can Island Port.
Tinubu also disclosed that Nigeria’s total public debt stands at $110.3 billion as of December 31, 2025, adding that the new borrowing would be carefully phased to ease pressure on debt servicing.
The Senate further approved the issuance of naira-denominated government securities as collateral for the loans, alongside provisions for dollar-based margin obligations.
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