The Nigerian Senate has approved President Bola Tinubu’s request to secure fresh external loans totalling $6 billion to support budget financing and infrastructure development.
The approval followed the presentation and adoption of a report by the Chairman of the Senate Committee on Local and Foreign Debts, Senator Aliyu Wamakko (APC, Sokoto North).
The decision came hours after the President formally wrote to the Senate seeking legislative approval for the facilities.
In a letter addressed to Senate President Godswill Akpabio and read during plenary, Tinubu requested approval to borrow $5 billion from Abu Dhabi Bank.
According to the President, the facility will be used to support budget deficit financing and meet existing debt obligations.
In a separate request, Tinubu also sought approval to obtain a $1 billion loan from UK Export Finance through Citibank in London.
The President explained that the loan will fund the rehabilitation of critical port infrastructure, including the Lagos Port Complex and Tin Can Island Port.
He said the projects are designed to tackle longstanding operational challenges and reposition Nigeria’s maritime sector.
Tinubu noted that the planned upgrades would address key infrastructure gaps, improve efficiency at the ports, enhance safety standards, and support the diversification of Nigeria’s non-oil trade.
He added that the projects are also expected to strengthen Nigeria’s position as a regional trade hub.
Following the reading of the requests, Akpabio referred both letters to the Senate Committee on Local and Foreign Debts and directed the panel to expedite its review.
The committee later presented its report, which was adopted by the Senate, paving the way for approval of the loans.
The latest borrowing request comes as the Federal Government continues to rely on both domestic and external loans to finance budget deficits and major infrastructure projects.
Four months ago, the National Assembly approved Tinubu’s request to raise N1.15 trillion from the domestic debt market to fund the 2025 budget deficit.
Both chambers of the legislature endorsed the borrowing after reviewing 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 highlighting key provisions of the 2025 Appropriation Act.
The panel noted that the 2025 budget provides for total expenditure of N59.99 trillion—an increase of N5.25 trillion from the initial N54.74 trillion proposed by the Executive—underscoring the widening fiscal gap and the government’s reliance on borrowing to bridge the deficit.
