President Bola Tinubu has secured Senate approval for a $6 billion foreign loan, with the Senate completing the process within hours of receiving the proposal.
The loan comprises $5 billion from First Abu Dhabi Bank and $1 billion from UK Export Finance, arranged by Citibank London, aimed at funding infrastructure projects, debt servicing, and port rehabilitation.
The funds will support budget implementation, priority infrastructure development, and urgent financial obligations, with Nigeria’s total public debt standing at $110.3 billion as of December 31, 2025.
Earlier, President Tinubu’s request to borrow was contained in two separate letters addressed to the President of the Senate, Senator Godswill Akpabio, which were read during plenary on Tuesday.
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.”
In recent years, the federal government has increasingly turned to external borrowing to finance budget deficits, fund infrastructure projects, and refinance existing obligations.
Officials argue that such loans, particularly those with relatively lower interest rates, help reduce the cost of debt and support critical sectors of the economy.
