The Senate of Nigeria has approved President Bola Tinubu’s request to secure $6 billion in external loans to finance key infrastructure projects and plug fiscal shortfalls.
The approval followed the presentation of a report by the Chairman of the Senate Committee on Local and Foreign Debts, Aliyu Wamakko, during plenary on Tuesday.
In a letter read to the Senate by its President, Godswill Akpabio, Tinubu requested legislative backing to borrow $5 billion from Abu Dhabi Bank to support budget deficit financing and meet existing debt obligations. Separately, he sought $1 billion from UK Export Finance via Citibank, London, to rehabilitate critical port infrastructure, including the Lagos Port Complex and Tin Can Island Port.
According to the President, the projects aim to tackle operational challenges, improve efficiency and safety standards, support non-oil trade diversification, and position Nigeria as a regional trade hub.
Akpabio referred the requests to the Senate Committee on Local and Foreign Debts, instructing the panel to expedite consideration. The committee’s report highlighted the widening fiscal gap under the 2025 Appropriation Act, noting that total expenditure rose from N54.74 trillion to N59.99 trillion, emphasizing the government’s reliance on borrowing to bridge deficits.
The approval comes just months after the National Assembly authorized the government to raise N1.15 trillion from the domestic debt market to fund the 2025 budget deficit, reflecting a continued mix of domestic and external borrowing to finance national priorities.
