The Senate has given approval to a request by President Bola Tinubu to obtain fresh external loans totalling $6 billion, aimed at closing fiscal gaps and financing critical infrastructure.
The approval followed the adoption of a report presented by the Chairman of the Senate Committee on Local and Foreign Debts, Senator Aliyu Wamakko.
The move came shortly after the President formally wrote to the upper chamber seeking legislative backing, underscoring the administration’s push to mobilise funds for key sectors.
In a letter addressed to the Senate President, Godswill Akpabio, and read during plenary, Tinubu requested approval to secure $5 billion from Abu Dhabi Bank to support budget deficit financing and meet existing debt commitments.
In a separate communication, the President also sought approval for a $1 billion facility from UK Export Finance through Citibank in London to fund the rehabilitation of major port infrastructure.
Tinubu stated that the projects—covering the Lagos Port Complex and Tin Can Island Port—are intended to resolve longstanding operational challenges and reposition Nigeria’s maritime sector. He added that the initiatives would enhance efficiency, improve safety standards, boost non-oil trade, and strengthen the country’s role as a regional trade hub.
Following the presentation of the requests, Akpabio referred them to the Senate Committee on Local and Foreign Debts, directing the panel to expedite its review—a process that culminated in Tuesday’s approval.
The latest borrowing plan comes amid the Federal Government’s continued reliance on a combination of domestic and external loans to fund budget deficits and infrastructure development.
Only four months ago, the National Assembly approved Tinubu’s request to raise N1.15 trillion from the domestic debt market to finance the 2025 budget deficit, completing the government’s financing framework for the year.
Both chambers endorsed the borrowing after considering reports from their respective committees on local and foreign debts.
At the Senate, approval followed the adoption of Wamakko’s committee report, which highlighted key elements of the 2025 Appropriation Act.
The committee noted that the 2025 budget projects total expenditure of N59.99 trillion—an increase of N5.25 trillion from the initial N54.74 trillion proposed by the Executive—reflecting a widening fiscal gap and the government’s growing dependence on borrowing to bridge the deficit.