The Senate has approved President Bola Tinubu’s request to secure fresh external loans totalling $6 billion, aimed at plugging fiscal gaps and financing key infrastructure projects.
The approval followed the presentation and consideration of a report by the Chairman of the Senate Committee on Local and Foreign Debts, Senator Aliyu Wamakko (APC, Sokoto North).
The decision came just hoursv after the President formally wrote to the Senate seeking legislative backing for the facilities, underscoring the Executive’s push to secure funding for priority sectors.
In a letter addressed to the President of the Senate, Godswill Akpabio, and read during plenary, Tinubu sought approval to borrow $5 billion from Abu Dhabi Bank to support budget deficit financing and meet existing debt obligations.
In a separate communication, the President also requested approval to obtain a $1 billion loan facility from UK Export Finance through Citibank in London to fund the rehabilitation of critical port infrastructure.
Tinubu noted that the projects—covering the Lagos Port Complex and Tin Can Island Port—are designed to tackle longstanding operational challenges and reposition Nigeria’s maritime sector.
According to the President, the projects aim to address critical deficiencies, improve efficiency, enhance safety standards, support non-oil trade diversification, and position Nigeria as a trade hub.
Following the reading of the requests, Akpabio referred both letters to the Senate Committee on Local and Foreign Debts, directing the panel to expedite consideration and report back promptly—a directive that culminated in Tuesday’s approval.
The latest borrowing request comes amid the Federal Government’s continued reliance on a mix of domestic and external loans to finance budget deficits and critical infrastructure.
Just four months ago, the National Assembly approved Tinubu’s request to raise N1.15tn from the domestic debt market to fund the 2025 budget deficit, effectively completing the government’s financing plan for the year.
Both chambers endorsed the borrowing after considering reports from their respective committees on local and foreign debts.
At the Senate, the approval followed the adoption of a report presented by Wamakko’s committee, which highlighted key provisions of the 2025 Appropriation Act.
The panel noted that the 2025 budget provides for a total expenditure of N59.99tn—an increase of N5.25tn from the initial N54.74tn proposed by the Executive—highlighting the widening fiscal gap and the government’s reliance on borrowing to bridge the deficit.
