- The Nigerian Senate has given the green light to President Bola Tinubu’s request to secure a total of $6 billion in external loans
- The approved loan is divided into $5 billion loan from Abu Dhabi Bank targeted at financing the budget deficit and $1 billion facility from UK Export Finance earmarked specifically for infrastructure upgrades
- The approval is set against the backdrop of a widening fiscal gap in Nigeria’s 2025 budget
The Nigerian Senate has approved President Bola Tinubu’s request to secure external loans totaling $6 billion, a move aimed at addressing fiscal shortfalls and funding key infrastructure projects.
The approval followed the consideration of a report presented by the Chairman of the Senate Committee on Local and Foreign Debts, Aliyu Wamakko, representing Sokoto North.
The decision came shortly after the President formally transmitted his request to the Senate, signaling the Executive’s urgency in sourcing funds for priority sectors of the economy.
In a letter addressed to Senate President Godswill Akpabio and read during plenary, Tinubu sought legislative approval to obtain $5 billion from Abu Dhabi Bank.
The funds are intended to support budget deficit financing and meet existing debt obligations.
In a separate request, the President also asked the Senate to approve a $1 billion loan facility from UK Export Finance, to be accessed through Citibank in London.
This loan will be used to rehabilitate critical port infrastructure across the country.
Tinubu explained that the projects, which focus on the Lagos Port Complex and Tin Can Island Port, are designed to resolve longstanding operational challenges and reposition Nigeria’s maritime sector for growth.
According to the President, the initiatives are aimed at addressing inefficiencies, improving safety standards, enhancing operational performance, boosting non-oil trade, and strengthening Nigeria’s position as a regional trade hub.
Following the reading of the requests, Akpabio referred both proposals to the Senate Committee on Local and Foreign Debts, directing the panel to fast-track its review and report back promptly, a process that culminated in Tuesday’s approval.
The latest borrowing plan reflects the Federal Government’s continued dependence on a combination of domestic and external loans to finance budget deficits and critical infrastructure projects.
Just four months earlier, the National Assembly approved Tinubu’s request to raise N1.15 trillion from the domestic debt market to fund the 2025 budget deficit, completing the government’s financing framework for the fiscal year.
Both chambers of the National Assembly endorsed the earlier borrowing request after reviewing reports from their respective committees on local and foreign debts.
At the Senate, approval was granted following the adoption of a report by Wamakko’s committee, which highlighted key provisions of the 2025 Appropriation Act.
The committee noted that the 2025 budget provides for a total expenditure of N59.99 trillion, an increase of N5.25 trillion from the initial N54.74 trillion proposed by the Executive, highlighting the widening fiscal gap and the government’s reliance on borrowing to bridge the deficit.