NASS Approves Tinubu’s $6bn Foreign Loan Request

NASS Approves Tinubu’s $6bn Foreign Loan Request

The National Assembly has approved President Bola Ahmed Tinubu’s request to secure about $6 billion in external loans, clearing the way for the Federal Government to access funding from lenders in the United Arab Emirates and the United Kingdom.

The approval followed the consideration of two separate requests transmitted by the president to the leadership of the legislature and read during plenary on Tuesday.

The letters were addressed to the Speaker of the House of Representatives, Tajudeen Abbas, and the President of the Senate, Godswill Akpabio.

In one of the requests, Tinubu sought legislative approval to raise up to $5 billion through a structured total return swap (TRS) external financing programme from First Abu Dhabi Bank of the United Arab Emirates. The president explained that the facility would be disbursed in tranches to support government financing needs.

“The purpose of this letter is to request for the approval and resolution of the National Assembly to establish a structured total return swap (TRS) derivative external financing programme of up to $5 billion which will be made available in tranches,” the letter read.

Tinubu noted that the proposed borrowing would add to Nigeria’s public debt stock, which he put at $110.3 billion, equivalent to about N159.2 trillion as of December 31, 2025.

He, however, said the funds would be channelled into critical areas, including budget implementation, infrastructure development, and refinancing of existing obligations.

According to him, the financing plan is part of efforts to ease pressure on domestic borrowing and replace relatively expensive debts with more favourable external options.

In a separate request, the president asked lawmakers to approve a $1 billion loan facility from UK Export Finance, arranged by Citibank’s London branch. He said the facility would be deployed to reconstruct and rehabilitate key port infrastructure in Lagos, including the Lagos Port Complex and Tin Can Island Port.

Following the presentation, the Speaker referred the requests to the House Committee on Aids, Loans and Debt Management for review. Chairman of the committee, Abubakar Nalaraba, subsequently moved a motion for the report to be considered at the Committee of Supply.

The House later adopted the report and approved the borrowing requests, effectively granting the Federal Government the authority to proceed with the external financing arrangements.

The approvals come as the government continues to seek funding for infrastructure upgrades and fiscal support, amid rising debt levels and pressure on public finances.

Analysts say the move reflects a shift towards external financing sources as authorities attempt to manage borrowing costs and sustain capital projects.