Segun Otokiti
The Nigerian Senate on Tuesday, March 31, 2026 approved a $6 billion external loan request from President Bola Ahmed Tinubu to address budget deficits and fund critical infrastructure.
The approval was granted swiftly, within approximately three to four hours of the request being read on the floor of the Senate by Senate President Godswill Akpabio.
The $6 billion loan package consists of two distinct facilities, including $5 billion from First Abu Dhabi Bank (UAE).
This is a structured total return swap (TRS) external financing program to be disbursed in tranches.
It is intended for budget implementation, infrastructure projects, and the refinancing of existing domestic and external debts.
The loan will raise Nigeria’s total public debt from $110.3 billion to $115.3 billion.
The second facility of the loan involves a $1 billion from UK Export Finance (Citibank London), specifically earmarked for the reconstruction and rehabilitation of the Lagos Port Complex and Tin Can Island Port.
The goal is to modernize port infrastructure, improve safety standards, and enhance operational efficiency.
The Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko, reviewed and recommended the approval of both requests.
Lawmakers explained that the phased drawdown of the $5 billion facility is intended to minimize the immediate impact on the country’s debt servicing obligations.
