Senate Approves President Tinubu's $6 Billion External Loan Request
The Nigerian Senate has officially approved President Bola Tinubu's request to secure external loans totaling $6 billion. This significant decision was made after careful consideration of a detailed report presented by Senator Aliyu Wamakko, who serves as the Chairman of the Senate Committee on Local and Foreign Debts.
Details of the Loan Request and Approval Process
The request was formally conveyed through two separate letters addressed to the Senate and read during the plenary session on Tuesday, March 31, 2026. In the first letter, President Tinubu sought approval to establish a structured total return swap (TRS) external financing program of up to $5 billion with First Abu Dhabi Bank.
According to the President, this loan will be released in tranches and utilized to support budget implementation, fund priority infrastructure projects, and refinance existing domestic and external debts. He emphasized that the funds would also assist the Federal Government in meeting urgent financial obligations.
Financial Context and Additional Requests
President Tinubu highlighted that Nigeria's total public debt stood at $110.3 billion, equivalent to approximately N159.2 trillion, as of December 31, 2025. He noted that the phased drawdown of the loan would help alleviate pressure on debt servicing, providing much-needed financial relief.
In a second letter, the President requested approval for the issuance of naira-denominated federal government securities as collateral for the facility, as well as the payment of margin obligations in U.S. dollars. Additionally, he sought approval for a $1 billion export finance facility from the United Kingdom, arranged by Citibank, specifically designated to fund the reconstruction and rehabilitation of the Lagos Port Complex and Tin Can Island Port.
This comprehensive loan approval underscores the government's commitment to addressing critical infrastructure needs and managing the nation's debt burden effectively. The Senate's endorsement follows a thorough review process, ensuring that the funds will be allocated to projects that enhance economic stability and growth.
