…approval was granted just hours after Senate President, read the President’s request during plenary on Tuesday.
ABUJA, NIGERIA- The iNews Times| The Nigerian Senate has approved a $6 billion external loan request submitted by President Bola Ahmed Tinubu, in a move aimed at supporting critical infrastructure development across the country.
The approval was granted just hours after Senate President, Godswill Akpabio, read the President’s request during plenary on Tuesday, underscoring the urgency attached to the proposal by both the executive and legislative arms of government.
The upper chamber of the National Assembly of Nigeria gave its nod following the presentation and consideration of a report by the Committee on Local and Foreign Debts, chaired by Aliyu Wamakko. The committee reviewed the details of the request and recommended its approval, citing the strategic importance of the projects tied to the funding.
President Tinubu’s request was conveyed through two separate letters addressed to the Senate President. In the first letter, the President sought approval to establish a structured Total Return Swap (TRS) external financing programme valued at up to $5 billion. The arrangement is expected to be executed in collaboration with First Abu Dhabi Bank, one of the leading financial institutions in the United Arab Emirates.
The Total Return Swap structure is designed to provide flexible financing by allowing Nigeria to access funds while managing repayment risks over time, potentially easing immediate fiscal pressure while ensuring that critical projects are not stalled due to funding constraints.
In the second letter, the President requested Senate approval for an additional $1 billion loan facility under the UK Export Finance framework. The facility is to be arranged by Citibank and is specifically earmarked for the rehabilitation and modernization of key port infrastructure in Lagos.
According to the President, the funds will be deployed toward the reconstruction and upgrade of the Lagos Port Complex and Tin Can Island Port, two of Nigeria’s busiest and most economically significant seaports. These facilities play a central role in the country’s import and export activities, and their upgrade is expected to improve efficiency, reduce congestion, and enhance Nigeria’s competitiveness in regional and global trade.
Lawmakers noted during deliberations that revitalizing the ports would not only boost revenue generation but also create jobs and stimulate economic growth, particularly in the maritime and logistics sectors.
The swift approval of the loan request highlights the Senate’s support for the administration’s infrastructure agenda, although it may also spark public debate around Nigeria’s rising debt profile and the long-term sustainability of external borrowing.
As the government moves forward with the financing plans, attention is likely to shift toward the implementation phase, with stakeholders expecting transparency, accountability, and measurable impact from the projects funded through the loans.
