The Senate Tuesday gave expeditious approval to $6billion foreign loan requests forwarded to it by President Bola Ahmed Tinubu.
President Tinubu had in two separate letters of request to the Senate and read in plenary by its President, Godswill Akpabio, disclosed plans to obtain $5 billion from First Abu Dhabi Bank and an additional $1 billion from UK Export Finance.
According to the President, the $5 billion facility is aimed at bridging financing gaps in the 2026 budget, while the $1 billion loan will be deployed for the rehabilitation of Lagos ports—considered a vital component of Nigeria’s trade and logistics infrastructure.
One of the letters read in part: “The purpose of this letter is to request the approval and resolution of the National Assembly to establish a structured Total Return Swap (TRS) external financing programme of up to $5 billion.
“The facility, to be arranged with First Abu Dhabi Bank, will be made available to the Federal Government of Nigeria in tranches.
“The programme is intended to support budget implementation, fund key infrastructure projects, and refinance more expensive domestic and external debts.
“It will also enable the government to meet other urgent financial needs as may be approved.
“The proposed loan of $5 billion will increase Nigeria’s public debt stock, which currently stands at $110.3 billion as of December 31, 2025, with projected debt service of about ₦20.5 trillion for 2026.
“The drawdown will be done in tranches to ensure sustainability in debt stock and servicing.
“I request the Senate to consider and approve the terms and conditions of this loan proposal and to authorise the issuance of Federal Government securities as collateral”.
The Senate President after reading the letter
commended the President for securing the financing arrangement during a recent trip to the United Kingdom, describing it as a positive outcome of Nigeria’s international engagements.
“This development is one of the gains of the recent engagement with the United Kingdom. I was present when the agreement was signed, and I must commend the President for his efforts. The results are beginning to show”, he said .
Akpabio also read a second letter which urged the Senate to approve a $1bn UK-backed loan for Lagos, Tin Can ports rehabilitation.
According to the letter, the proposed United Kingdom Export Finance (UKEF)-backed facility is being arranged by Citibank London and other financiers.
The letter said that the loan is intended to fund the reconstruction and upgrade of the two critical ports under an Engineering, Procurement and Construction plus Finance (EPC+F) model to be implemented by the Nigerian Ports Authority (NPA).
According to the President’s request, the project is a strategic modernisation initiative aimed at restoring infrastructure at the ports, which have operated for between 50 and 100 years and are now at advanced stages of deterioration.
It noted that the rehabilitation would address decades of infrastructure deficits, improve operational efficiency, enhance safety standards, and align the facilities with global best practices.
The Federal Government also said the project would boost Nigeria’s competitiveness as a maritime hub and support the diversification of the economy through increased non-oil exports.
A breakdown of the financing shows that $429.7 million is earmarked for the Lagos Port Complex, comprising $373.2 million for commercial contract financing and $56.5 million for UKEF premium. Tin Can Island Port is to receive $571.1 million, including $496 million for commercial financing and $75.1 million for the UKEF premium.
The facility has a tenure of up to 14 years, with an availability period of 48 months. The UKEF premium, estimated at 1.07 per cent per annum, is payable upfront but can be financed as part of the loan.
The proposal has already secured approval from the Federal Executive Council, according to the letter.
In his remarks on the request , Akpabio said the condition of Tin Can Island Port has been a source of concern because obsolete equipment there like breakwaters constructed as far back as 1901.
He added that the situation has made Nigeria less attractive to international shipping lines, with many vessels opting for neighbouring ports.
“The implication is that the current is too strong, and ships experience delays. Many now prefer to berth in neighbouring countries, making Nigeria less attractive for maritime business,” he said.
The Senate President also commended President Tinubu for securing the financing arrangement during a recent engagement in the United Kingdom.
“This development is one of the gains of the recent engagement with the United Kingdom. I was present when the agreement was signed, and I must commend the President for his efforts. The results are beginning to show,” he added.
The proposed borrowings are part of ongoing efforts by the government to strengthen fiscal capacity and tackle infrastructure deficits, particularly in the maritime sector.
