By Adesakin Adefemi
The Senate has approved President Bola Tinubu’s request to secure external loans totalling $6 billion. The approval was granted barely three and a half hours after Senate President Godswill Akpabio read the president’s letter seeking approval.
The loans are divided into two parts: a $5 billion facility from First Abu Dhabi Bank and a $1 billion loan from Citibank, London, arranged by UK Export Finance. The funds will be used for budget implementation, development of priority infrastructure projects, and repayment of domestic and external debts.
President Tinubu said the facility will help the federal government meet urgent financial obligations and support economic reforms. The loan will be drawn in phases to reduce pressure on the country’s debt stock and servicing obligations.
Nigeria’s total public debt currently stands at $110.3 billion, equivalent to about N159.2 trillion as of December 31, 2025. The president noted that the loan will be used to address fiscal gaps and upgrade key transport facilities.
The Senate Committee on Local and Foreign Debts reviewed the proposals and recommended approval. The committee’s report was presented and considered by the Senate, leading to the approval of the loans.
The $1 billion loan from Citibank will be used for the reconstruction and rehabilitation of the Lagos Port Complex and Tin Can Island Port. This project aims to improve cargo handling efficiency, enhance safety standards, and reduce congestion at the nation’s busiest maritime gateways.
President Tinubu emphasized that the port upgrade projects are intended to address longstanding operational deficiencies and position Nigeria as a competitive trade hub in the West African sub-region.
The Senate’s approval of the loan request is seen as a significant development in Nigeria’s efforts to strengthen its economy and address infrastructure challenges.
The loan approval has sparked interest in the country’s economic circles, with many watching to see how the funds will be utilized.
