The Nigerian Senate on Tuesday approved President Bola Tinubu’s request to secure external loans totalling $6 billion, in a move that was concluded in barely three and a half hours after the proposal was presented during plenary.
The approval followed the consideration of a report by the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko (APC, Sokoto North), shortly after Senate President Godswill Akpabio read two separate letters from the president seeking legislative consent.
In the first correspondence, President Tinubu requested approval to establish a structured Total Return Swap (TRS) external financing programme of up to $5 billion with First Abu Dhabi Bank in the United Arab Emirates. According to the president, the facility would be disbursed in tranches and utilised for budget implementation, development of priority infrastructure, and refinancing of existing 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.
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Tinubu explained that the phased drawdown of the facility would help ease pressure on Nigeria’s debt stock and servicing obligations, while also enabling the federal government to meet urgent financial commitments when necessary.
In a second letter, the president sought approval for a separate $1 billion loan facility under the UK Export Finance arrangement, facilitated by Citibank’s London branch. The funds, he said, would be deployed for the reconstruction and rehabilitation of the Lagos Port Complex and Tin Can Island Port—two of Nigeria’s most critical maritime gateways.
The president also requested legislative backing for the issuance of naira-denominated federal government securities as collateral for the financing arrangement, alongside provisions for margining obligations in US dollars.
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Nigeria’s total public debt currently stands at $110.3 billion, equivalent to about ₦159.2 trillion as of December 31, 2025, according to the president. He maintained that the new borrowing plan is part of efforts to stabilise the country’s fiscal position by replacing high-cost debts and supporting economic development initiatives.
However, the rapid approval of the loan request has raised concerns among observers about the level of legislative scrutiny applied to such a significant financial decision, especially in light of Nigeria’s growing debt profile and exposure to external borrowing risks.
While the government argues that the loans will support infrastructure development and improve debt sustainability through refinancing, analysts warn that increasing reliance on foreign debt could heighten vulnerability to exchange rate fluctuations and future repayment pressures.
Details of the loan terms and implementation are expected to emerge in the coming days.
