By Abdulsamad Abdulmalik
The Senate, on Tuesday, approved President Bola Tinubu’s request to secure external loans totalling $6 billion, barely three and a half hours after the communication was read on the floor of the Red Chamber.
The approval followed the consideration and adoption of a report presented by the Chairman of the Senate Committee on Local and Foreign Debts, Senator Aliyu Wamakko (APC, Sokoto North).
President of the Senate, Godswill Akpabio, had earlier read two separate letters from the President during plenary, seeking legislative approval for the borrowing plan.
In the first correspondence, Tinubu requested approval to establish a structured total return swap (TRS) external financing programme of up to $5 billion with First Abu Dhabi Bank, United Arab Emirates.
He explained that the facility, to be disbursed in tranches, would support budget implementation, fund priority infrastructure projects, and refinance existing high-cost domestic and external debts.
“The purpose of this letter is to request the approval and resolution of the National Assembly… to establish a structured total return swap (TRS) derivative external financing programme… of up to $5 billion,” the President stated.
Tinubu added that the financing arrangement would also provide fiscal flexibility for the Federal Government to meet urgent financial obligations when necessary.
He further disclosed that Nigeria’s total public debt stood at $110.3 billion, approximately N159.2 trillion, as of December 31, 2025, noting that the phased drawdown of the loan would help ease pressure on debt servicing.
In a second letter, the President sought the Senate’s approval for a $1 billion loan facility under the UK Export Finance arrangement, to be facilitated by Citibank, London.
According to him, the fund would be deployed for the reconstruction and rehabilitation of the Lagos Port Complex and Tin Can Island Port.
The President also requested approval for the issuance of naira-denominated Federal Government securities as collateral for the facility, as well as the settlement of margining obligations in United States dollars.
The Senate subsequently approved the requests after deliberation.
