The Senate has approved President Bola Tinubu’s request for new external loans totaling $6 billion to bridge fiscal deficits and fund vital infrastructure projects.
Senator Aliyu Wamakko (APC, Sokoto North), Chairman of the Senate Committee on Local and Foreign Debts, presented and considered a report before it was approved.
The decision came just hours after the president formally wrote to the Senate requesting legislative support for the facilities, highlighting the executive’s efforts to win funds for priority industries.
Tinubu requested clearance from the Senate President, Godswill Akpabio, to borrow $5 billion from Abu Dhabi Bank to boost budget deficit finance and pay existing debt obligations in a letter read during a plenary session.
In a separate communication, the president asked for clearance to acquire a $1 billion loan from UK Export Finance via Citibank in London to fund the renovation of essential port facilities.
Tinubu stated that the projects—which include the Lagos Port Complex and Tin Can Island Port—are intended to address long-standing operational difficulties and reposition Nigeria’s marine sector.
According to the president, the initiatives aim to fix significant weaknesses, increase efficiency, raise safety standards, boost non-oil trade diversification, and establish Nigeria as a trading hub.
Following the reading of the requests, Akpabio submitted both letters to the Senate Committee on Local and Foreign Debts, ordering the panel to expedite its examination and report back as soon as possible—a direction that ended in Tuesday’s acceptance.
The latest borrowing request comes as the federal government continues to rely on a combination of domestic and external loans to cover budget deficits and vital infrastructure.
Just four months ago, the National Assembly approved Tinubu’s proposal to collect N1.15 trillion from the domestic debt market to pay the 2025 budget shortfall, effectively completing the government’s financing strategy for the year.
Both houses approved the borrowing after reviewing reports from their respective committees on domestic and foreign loans.
The Senate approved the report submitted by Wamakko’s committee, which emphasized significant elements of the 2025 Appropriation Act.
The panel highlighted that the 2025 budget calls for a total expenditure of N59.99 trillion, up N5.25 trillion from the initial N54.74 trillion recommended by the Executive, underscoring the government’s worsening fiscal shortfall and reliance on borrowing to reduce the deficit.
