Tinubu seeks Senate approval to borrow $6bn for debt repayment, port upgrades

President Bola Tinubu has formally requested the Senate’s approval to secure $6 billion in external loans to fund federal projects and repay existing debts.

Tinubu made the request via two letters addressed to Senate President Godswill Akpabio and read during plenary in Abuja on Tuesday, March 31, 2026.

The first letter seeks approval for a $5 billion structured total return swap (TRS) facility from First Abu Dhabi Bank, the United Arab Emirates (UAE).

Tinubu said the funds would be released in tranches to support budget implementation, priority infrastructure projects, and the repayment of expensive domestic and foreign debts, while also helping the government meet urgent financial obligations.

The president acknowledged that the borrowing would increase Nigeria’s public debt, currently standing at $110.3 billion (approximately N159.2 trillion) as of December 31, 2025, but said the phased drawdown would mitigate pressure on debt servicing.

He also requested Senate approval for issuing naira-denominated federal government securities as collateral and settling margining obligations in US dollars.

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In the second letter, Tinubu sought approval for a $1 billion UK Export Finance loan arranged by Citibank, London.

The funds, according to him, are earmarked for the reconstruction and rehabilitation of the Lagos Port Complex and Tin Can Island Port, which he said have faced significant structural challenges.

“The project will modernise two of Nigeria’s most critical ports, enhance operational efficiency, improve safety, and align them with global standards,” Tinubu stated, adding that the upgrades would support trade diversification and maintain Nigeria’s position as a competitive maritime hub.

Akpabio referred both requests to the Senate Committee on Local and Foreign Debts for further consideration.

The Star