The Senate on Tuesday approved President Bola Tinubu’s request to secure $6 billion in external loans, granting legislative backing for the facilities hours after the Executive formally sought approval to finance critical infrastructure and address fiscal gaps.
The approval followed the consideration of a report submitted by the Chairman of the Senate Committee on Local and Foreign Debts, Senator Aliyu Wamakko (APC, Sokoto North).
In a letter read during plenary, President Tinubu sought approval for two separate facilities: a $5 billion loan from Abu Dhabi Bank to support budget deficit financing and meet existing debt obligations, and a $1 billion loan from UK Export Finance through Citibank London to fund the rehabilitation of the Lagos Port Complex and Tin Can Island Port.
According to the President, the port rehabilitation projects aim to address longstanding operational challenges, improve efficiency, enhance safety standards, support non-oil trade diversification, and position Nigeria as a regional trade hub.
Senate President Godswill Akpabio referred the requests to the committee for expedited consideration, a directive that culminated in Tuesday’s approval.
The latest borrowing comes amid the Federal Government’s sustained reliance on domestic and external loans to finance budget deficits. Four months ago, the National Assembly approved a separate request to raise N1.15 trillion from the domestic debt market to fund the 2025 budget deficit.
In its report, the Senate Committee on Local and Foreign Debts noted that the 2025 Appropriation Act provides for total expenditure of N59.99 trillion—an increase of N5.25 trillion from the Executive’s initial proposal—highlighting the widening fiscal gap driving the government’s borrowing strategy.