Nigerian Senate has approved President Bola Ahmed Tinubu’s request to secure a $6 billion external loan aimed at supporting budget implementation, infrastructure development, and debt management.
The approval followed the consideration of a report presented on Tuesday by Chairman of the Senate Committee on Local and Foreign Debts, Senator Aliyu Wamakko, during plenary.
The loan request, which was conveyed to lawmakers through two separate letters from President Tinubu, received backing after lawmakers reviewed the proposed financing structure and intended use of the funds.
*Breakdown of the $6 Billion Loan*
According to the Senate report, the financing package comprises:
$5 billion under a Structured Total Return Swap (TRS) external financing programme with First Abu Dhabi Bank, to be disbursed in phases.
$1 billion export finance facility from the United Kingdom, arranged by Citibank, earmarked for the reconstruction and rehabilitation of Lagos Port Complex and Tin Can Island Port.
*Purpose of the Loan*
The Federal Government said the facilities will be deployed to:
Support implementation of the 2026 national budget
Fund priority infrastructure projects
Refinance existing domestic and external debts
Meet urgent financial obligations
President Tinubu, in his communication to the Senate, explained that the phased drawdown of the loan would help reduce immediate pressure on Nigeria’s debt servicing obligations while ensuring steady funding for critical projects.
In addition to approving the loan request, the Senate also endorsed:
Issuance of naira-denominated Federal Government securities as collateral
Payment of margin obligations in U.S. dollars where required
The lawmakers said the approvals were necessary to enable the Federal Government access favourable financing terms and accelerate key infrastructure projects, particularly in the maritime sector.
The reconstruction of the Lagos Port Complex and Tin Can Island Port is expected to boost trade efficiency, reduce congestion, and enhance Nigeria’s revenue generation capacity.
The Senate’s approval marks a significant step in the administration’s effort to secure external funding for economic stabilization and infrastructure development.