Abuja, Nigeria — Nigeria’s upper legislative chamber, the Senate of Nigeria, has approved a request by President Bola Ahmed Tinubu to secure external loans totalling $6 billion, aimed at addressing fiscal shortfalls and funding major infrastructure projects.
The approval followed the consideration of a report presented by the Chairman of the Senate Committee on Local and Foreign Debts, Senator Aliyu Wamakko. The committee reviewed two separate loan requests submitted by the President earlier the same day.
In a letter addressed to the President of the Senate, Godswill Akpabio, the Nigerian leader sought legislative backing to borrow $5 billion from Abu Dhabi Bank. The funds are intended to support budget deficit financing and help meet existing debt obligations of the federal government of Nigeria.
In a separate communication, the President also requested approval to obtain an additional $1 billion loan facility from United Kingdom Export Finance through Citibank in London. The facility is designated for the rehabilitation of key port infrastructure in Nigeria.
According to the request, the projects will cover the Lagos Port Complex and the Tin Can Island Port. These facilities are among Nigeria’s busiest maritime gateways and have faced longstanding operational and capacity challenges.
President Tinubu stated that the proposed projects are designed to address infrastructure deficiencies, improve operational efficiency, enhance safety standards, and support non oil trade diversification. He also noted that the investment is expected to strengthen Nigeria’s position as a regional trade hub.
Following the reading of the letters during plenary, Akpabio referred both requests to the Senate Committee on Local and Foreign Debts with instructions to expedite review. The committee returned its report the same day, leading to Tuesday’s approval.
Okay News reports that the new borrowing request comes amid continued reliance by the federal government of Nigeria on both domestic and external loans to finance budget deficits and infrastructure development.
Four months earlier, the National Assembly approved the President’s request to raise ₦1.15 trillion (about $767 million) from the domestic debt market to fund the 2025 budget deficit. That approval completed the government’s financing plan for the year.
Lawmakers also referenced provisions of the 2025 Appropriation Act, which set total expenditure at ₦59.99 trillion (about $40 billion), an increase from the ₦54.74 trillion initially proposed by the executive branch. The committee noted that the widening fiscal gap has increased the government’s dependence on borrowing to bridge funding needs.
The Senate’s latest approval allows the executive branch to proceed with negotiations and drawdown of the facilities, subject to agreed terms with the lenders.
