Nigeria’s Senate has approved a $6 billion external loan request by President , marking a rapid legislative decision concluded within hours of submission.
The approval followed the reading of the President’s request letter by Senate President during plenary on Tuesday. Lawmakers moved swiftly to consider and adopt the report presented by , Chairman of the Senate Committee on Local and Foreign Debts.
According to the details, the loan package includes a $5 billion structured Total Return Swap (TRS) financing arrangement with First Abu Dhabi Bank in the United Arab Emirates. The facility is expected to be disbursed in phases and will support budget implementation, infrastructure development, and refinancing of existing debts.
In a separate request, President Tinubu also secured approval for a $1 billion loan facility from the United Kingdom, arranged through Citibank’s London branch. This component is designated for the reconstruction and rehabilitation of key national assets, including the Lagos Port Complex and Tin Can Island Port.
The President noted that Nigeria’s total public debt stood at approximately $110.3 billion (about ₦159.2 trillion) as of December 31, 2025. He emphasized that the phased borrowing strategy is designed to ease pressure on debt servicing while addressing urgent fiscal and infrastructure needs.
Additionally, the Senate approved the issuance of naira-denominated government securities as collateral for the loans, alongside provisions for meeting associated financial obligations in U.S. dollars.
The development underscores the government’s continued reliance on external financing to stabilize the economy and fund critical national projects.
