The Nigerian Senate has approved a request by President Bola Ahmed Tinubu to obtain external loans totalling $6 billion to support government financing and infrastructure development.
The approval was granted on Tuesday, barely three and a half hours after the request was formally presented on the floor of the upper legislative chamber by Senate President Godswill Akpabio.
The decision followed the presentation and adoption of a report by Senator Aliyu Magatakarda Wamakko, Chairman of the Senate Committee on Local and Foreign Debts, who recommended that the chamber approve the borrowing plan.
Earlier during plenary, Akpabio had read two separate letters from President Tinubu seeking legislative approval for the proposed loans.
In the first letter, the president 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.
Tinubu explained that the financing facility would be made available to Nigeria in tranches and would support budget implementation, priority infrastructure projects, and the refinancing of more expensive domestic and external debts.
“The purpose of this letter is to request the approval and resolution of the National Assembly pursuant to the provisions of Section 21(1) and 27(1) of the Debt Management Office Establishment Act 2003 to establish a structured total return swap derivative external financing programme,” the president stated.
According to Tinubu, the facility would also help the Federal Government meet urgent financial obligations when necessary.
The president further disclosed that Nigeria’s total public debt stood at $110.3 billion (about ₦159.2 trillion) as of December 31, 2025, noting that the proposed loan would be drawn in phases to reduce pressure on the country’s debt stock and servicing obligations.
In the second letter, Tinubu requested approval for the issuance of naira-denominated Federal Government securities as collateral for the facility and for the payment of margining obligations in US dollars.
The president also sought approval for a $1 billion export credit facility from the United Kingdom, arranged by Citibank, London branch. The loan is intended for the reconstruction and rehabilitation of the Lagos Port Complex and Tin Can Island Port.
Following deliberations, the Senate approved the requests, clearing the way for the Federal Government to proceed with the external financing arrangements.