The Senate has expeditiously approved the request of President Bola Tinubu to go for external loans totalling $6 billion.

The approval came barely three and a half hours after the senate president, Godswill Akpabio, read the letter from the president, seeking the approval.

The Senate approved the loans following the presentation and consideration of the report by Senator Aliyu Wamakko, APC, Sokoto North, Chairman, Senate Committee on Local and Foreign Debts.

Earlier, President Tinubu’s request to borrow was contained in two separate letters addressed to the President of the Senate, Senator Godswill Akpabio, that were read during plenary on Tuesday.

In the first letter read by Akpabio, President Tinubu requested the 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.

In the letter, President Tinubu, who noted that the facility would be made available to Nigeria in tranches, said, “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 (TRS) derivative external financing programme from First Abu Dhabi Bank of the United Arab Emirates of up to $5 billion, which will be made available to the Federal Republic of Nigeria in tranches.”

According to Tinubu, the proceeds would be used for budget implementation, development of priority infrastructure projects and repayment of relatively expensive domestic and external debts, adding that the facility would also help the federal government meet urgent financial obligations when necessary.

The president said that Nigeria’s total public debt currently stands at $110.3 billion, equivalent to about N159.2 trillion as of December 31, 2025.

According to him, the loan would be drawn in phases to reduce pressure on the country’s debt stock and servicing obligations.

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

In the letter, the president, who sought approval for a $1 billion UK export finance loan facility arranged by Citibank, London branch, said that the loan would be used for the reconstruction and rehabilitation of the Lagos Port Complex and Tin Can Island Port. (Vanguard)

Update news