Senate Grants Express Approval for President Tinubu’s $6 Billion External Loan Request

 ​The Senate has given a quick nod to President Bola Tinubu's request to secure $6 billion in external loans to fund infrastructure and budget implementation.

​The Nigerian Senate has officially approved a request from President Bola Tinubu to secure external loans totaling $6 billion. The approval, which came on Tuesday, March 31, 2026, was processed in record time, barely three and a half hours after Senate President Godswill Akpabio read the formal letters from the President during plenary. The move follows a report presented by Senator Aliyu Wamakko, the Chairman of the Senate Committee on Local and Foreign Debts, which recommended the approval to help the federal government meet its financial obligations.

​The $6 billion total is divided into two major funding streams. The first is a $5 billion structured 'total return swap' external financing programme with the First Abu Dhabi Bank of the United Arab Emirates. According to the President’s letter, this facility will be made available in tranches and is intended for budget implementation, the development of priority infrastructure projects, and the repayment of more expensive existing debts. President Tinubu noted that this structured approach is designed to reduce the immediate pressure on the country’s debt servicing obligations, which stood at approximately $110.3 billion as of late 2025.

​In a separate request, the President also secured approval for a $1 billion UK export finance loan facility arranged by Citibank in London. This specific portion of the borrowing is earmarked for the massive reconstruction and rehabilitation of two of Nigeria’s most critical maritime gateways: the Lagos Port Complex and the Tin Can Island Port. The Senate also approved the issuance of naira-denominated federal government securities as collateral for these facilities.

​This rapid legislative approval has sparked intense conversation online, with many Nigerians debating the implications of increasing the national debt stock. While supporters of the administration argue that the loans are necessary for critical infrastructure like the ports and rail lines, others are expressing concern over the growing total public debt, which is estimated to be around N159.2 trillion. The Federal Government maintains that these loans are a strategic necessity to stabilize the economy and ensure the completion of vital national projects.

Source: VanguardNgr