President Bola Tinubu on Tuesday asked the Senate to approve two fresh foreign loans totalling $6 billion to be obtained from the United Arab Emirates and the United Kingdom.
Mr Tinubu’s request was contained in separate letters read by the Senate President, Godswill Akpabio, during the plenary.
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In the first letter, the president sought approval to secure up to $5 billion from First Abu Dhabi Bank.
He said the facility would be disbursed in tranches and used to support budget implementation, fund priority infrastructure projects, and refinance relatively expensive domestic and external debts.
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Mr Tinubu added that the loan would also help the federal government meet urgent financial obligations when necessary.
He further requested approval for the issuance of naira-denominated federal government securities as collateral for the facility, as well as the payment of margining obligations in US dollars.
“The purpose of this letter is to request for the approval and resolution of the National Assembly pursuant to the provisions of section 21(1) and 27(1) of the Debt Management Office Establishment Act 2003 to establish a structured Total Return Swap (TRS) derivative external financing programme from First Abu Dhabi Bank of the United Arab Emirates of up to $5 billion which will be made available to the Federal Republic of Nigeria in tranches,” the letter read.
$1 billion from UK to reconstruct Tin Can Island
In a separate request, the President Tinubu also sought approval for a $1 billion export finance facility from the United Kingdom, arranged by Citibank.
He said the loan would fund the reconstruction and rehabilitation of the Tin Can Island Port and the Lagos Port Complex.
“The rehabilitation of the ports project is a strategic modernisation initiative of the Federal Government of Nigeria through the Nigerian Ports Authority to restore and upgrade two of Nigeria’s most vital ports namely Tin Can Island Port complex and Lagos Port complex Apapa which have reached critical engineering failures,” the letter read.
He noted that the rehabilitation would address infrastructure gaps, improve port efficiency, enhance safety standards, and align Nigeria’s port facilities with global best practices.
Mr Tinubu added that the project would strengthen Nigeria’s position as a maritime hub and support non-oil trade diversification.
After reading the letter, the senate president referred the requests to the Senate Committee on Local and Foreign Debts for further legislative consideration.
Nigeria’s fresh borrowing request comes amid concerns over the country’s rising debt burden and debt servicing pressures.
According to the Debt Management Office, Nigeria’s total public debt stood at over N87 trillion (about $113 billion) as of mid-2023, following the inclusion of Ways and Means advances from the Central Bank of Nigeria. The figure has continued to climb with new borrowings and exchange rate adjustments.
Although Nigeria’s debt-to-GDP ratio remains moderate compared to some peers, analysts have repeatedly flagged the country’s weak revenue base as a major risk. A significant portion of government revenue is spent on servicing debt, raising concerns about fiscal sustainability.
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The International Monetary Fund and the World Bank have both advised Nigeria to prioritise revenue mobilisation, improve tax collection, and ensure that new borrowings are tied to productive investments capable of generating returns.
In recent years, the federal government has increasingly turned to external borrowing to finance budget deficits, fund infrastructure projects, and refinance existing obligations. Officials argue that such loans, particularly those with relatively lower interest rates, help reduce the cost of debt and support critical sectors of the economy.*s 8
