SENATE APPROVES TINUBU’S $6BN EXTERNAL LOAN REQUEST IN THREE HOURS

The Senate has officially approved President Bola Ahmed Tinubu’s request to secure a $6 billion external loan to fund critical infrastructure and support the 2026 budget. The swift approval came on Tuesday, March 31, 2026, barely three and a half hours after Senate President Godswill Akpabio read the formal request during plenary. The borrowing plan is designed to provide fiscal liquidity and address “critical engineering failures” in Nigeria’s maritime sector.

The largest portion of the request involves a $5 billion Structured Total Return Swap (TRS) financing programme from the First Abu Dhabi Bank of the United Arab Emirates. President Tinubu explained that this facility would be disbursed in tranches to support federal funding needs, manage fiscal liquidity, and assist in the repayment of relatively expensive domestic and external debts. As part of the deal, the Senate approved the issuance of naira-denominated Federal Government securities as collateral for the facility, alongside the payment of margining obligations in US dollars.

The second part of the loan is a $1 billion UK/EF facility sourced from Citibank London. These funds are strictly earmarked for the urgent rehabilitation of major maritime hubs, specifically the Lagos Port Complex (Apapa) and the Tin Can Island Port. The Presidency noted that the modernization of these ports is vital to preventing a total collapse of trade infrastructure and sustaining Nigeria’s competitiveness as a maritime hub.

Reports that this new borrowing will further increase Nigeria’s public debt stock, which stood at $110.3 billion (approximately N159.2 trillion) as of December 31, 2025. President Tinubu assured the National Assembly that the loans would be drawn in phases to minimize pressure on debt servicing obligations. Despite concerns from economic stakeholders regarding the country’s rising debt-to-revenue ratio, the Senate moved quickly to grant the approval, referring the technical details to the relevant committees for oversight and implementation monitoring.