Nigeria’s Senate has approved President Bola Tinubu’s request to secure external loans totaling $6 billion, concluding the process just hours after it was presented during Tuesday’s plenary.
The approval came approximately three and a half hours after Senate President Godswill Akpabio read the president’s request on the floor.
Lawmakers gave their consent following the consideration of a report submitted by Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debts.
Breakdown of the Borrowing Plan
The request was contained in two separate letters sent to the Senate. A key component is a proposal to establish a structured total return swap (TRS) external financing program of up to $5 billion with First Abu Dhabi Bank.
According to the president, the facility will be disbursed in tranches and is intended to:
- Support budget implementation
- Finance priority infrastructure projects
- Refinance existing high-cost domestic and external debts
- Meet urgent fiscal obligations
Nigeria’s Debt Position
President Tinubu also disclosed that Nigeria’s total public debt stood at approximately $110.3 billion (about ₦159.2 trillion) as of December 31, 2025.
Speed of Approval Raises Attention
The swift approval—completed within hours—highlights the urgency of the financing plan but may also draw scrutiny regarding legislative oversight and the time for deliberation on major borrowing decisions.
The development underscores the federal government’s continued reliance on external financing to manage fiscal pressures, fund infrastructure, and stabilize public finances amid ongoing economic challenges.
