BREAKING: Senate approves Tinubu’s $6bn loan request

The Senate has approved a $6 billion external borrowing request by Bola Tinubu, completing the process within hours of receiving the proposal.

The approval followed the reading of the president’s request during plenary by Godswill Akpabio, the Senate president.

The Senate approved the loans following the presentation and consideration of the report by Senator Aliyu Wamakko, APC, Sokoto North, Chairman, Senate committee on local and foreign debts.

Earlier, President Tinubu’s request to borrow was contained in two separate letters addressed to the President of the Senate, Senator Godswill Akpabio, that were read during plenary on Tuesday.

In the first letter read by Akpabio, President Tinubu requested the approval to establish a structured total return swap (TRS) external financing programme of up to $5 billion with First Abu Dhabi Bank of the United Arab Emirates.

In the letter, President Tinubu, who noted that the facility would be made available to Nigeria in tranches, said, “The purpose of this letter is to request the approval and resolution of the National Assembly pursuant to the provisions of section 21(1) and 27(1) of the Debt Management Office Establishment Act 2003 to establish a structured total return swap (TRS) derivative external financing programme from First Abu Dhabi Bank of the United Arab Emirates of up to $5 billion, which will be made available to the Federal Republic of Nigeria in tranches.

According to Tinubu, the proceeds would be used for budget implementation, development of priority infrastructure projects and repayment of relatively expensive domestic and external debts, adding that the facility would also help the federal government meet urgent financial obligations when necessary.

The president said that Nigeria’s total public debt currently stands at $110.3 billion, equivalent to about N159.2 trillion as of December 31, 2025.

According to him, the loan would be drawn in phases to reduce pressure on the country’s debt stock and servicing obligations.

The Senate further approved the issuance of naira-denominated securities as collateral for the facility, as well as provisions for dollar-denominated obligations tied to the arrangement.