Senate approves Tinubu’s $6bn loan request

Senate approves Tinubu’s $6bn loan request

The Senate on Tuesday approved President Bola Ahmed Tinubu’s request to secure external loans totalling $6bn to finance key infrastructure projects and support budget implementation.

The approval followed the consideration of a report presented by the Chairman of the Senate Committee on Local and Foreign Debts, Aliyu Wamakko, shortly after the President’s request was read on the floor by Senate President Godswill Akpabio.

The loan request was transmitted to the upper chamber in two separate letters. In the first, the President sought approval to obtain up to $5bn through a structured financing arrangement with First Abu Dhabi Bank to address funding gaps in the 2026 budget, meet existing financial obligations, and support priority projects.

In the second request, Tinubu asked the Senate to approve a $1bn loan facility backed by UK Export Finance and arranged by Citibank, London, for the rehabilitation of the Lagos Port Complex and Tin Can Island Port.

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According to the President, the port rehabilitation projects are expected to enhance operational efficiency, improve safety standards, and strengthen Nigeria’s competitiveness as a regional maritime hub.

Presenting the committee’s report, Wamakko said the proposed loans were in line with existing laws and necessary to fund critical infrastructure and stimulate economic growth.

The Senate subsequently approved the requests after deliberations, signalling legislative backing for the Federal Government’s plan to bridge fiscal deficits through external borrowing.

The approval underscores the government’s continued reliance on foreign loans to support development projects amid mounting fiscal pressures.

Senate approves Tinubu’s $6bn loan request