JUST-IN: Senate okays Tinubu’s $6bn loan plan

The Senate has approved President Bola Tinubu’s request to secure fresh external loans totalling $6 billion, aimed at addressing fiscal shortfalls and financing critical infrastructure projects.

The approval followed the consideration of a report presented by Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debts, shortly after the President formally sought legislative backing.

In a letter addressed to Senate President, Godswill Akpabio, and read during plenary, Tinubu requested approval to obtain a $5 billion loan from Abu Dhabi Bank to support budget deficit financing and meet existing debt obligations.

In a separate request, the President sought approval for a $1 billion loan facility from UK Export Finance, arranged through Citibank in London, to fund the rehabilitation of key port infrastructure.

The projects targeted under the facility include the Lagos Port Complex and Tin Can Island Port, which the President said are critical to addressing longstanding operational challenges within Nigeria’s maritime sector.

According to Tinubu, the planned upgrades are expected to improve efficiency, enhance safety standards, support non-oil trade diversification, and position Nigeria as a competitive regional trade hub.

Following the presentation of the requests, Akpabio referred the proposals to the Senate Committee on Local and Foreign Debts with a directive for expedited review—a process that culminated in their swift approval.

The latest borrowing move comes amid the Federal Government’s continued reliance on both domestic and external financing to bridge widening budget deficits and fund strategic projects.

Just four months earlier, the National Assembly approved the administration’s request to raise N1.15 trillion from the domestic debt market to support the 2025 budget deficit, completing the government’s financing plan for the fiscal year.

Lawmakers noted that the 2025 Appropriation Act provides for a total expenditure of N59.99 trillion—an increase from the N54.74 trillion initially proposed by the executive—underscoring the growing fiscal gap and the government’s dependence on borrowing to sustain spending.