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Breaking: Senate Swiftly Clears Tinubu’s $6bn Loan Plan Amid Fiscal Pressures

Published by Samuel Ayomide on March 31st, 2026.

The Senate on Tuesday approved President Bola Tinubu’s request to secure external loans totalling $6 billion, concluding deliberations within hours of receiving the proposal.

The approval followed the reading of the President’s correspondence by Senate President Godswill Akpabio during plenary, after which lawmakers moved quickly to consider and adopt the report of the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko, as reported by Channels Television.

Tinubu’s borrowing plan was presented in two separate communications to the upper chamber. In one, the President sought legislative backing for a $5 billion structured financing arrangement with First Abu Dhabi Bank in the United Arab Emirates. The facility, designed as a Total Return Swap (TRS) programme, is expected to be disbursed in phases.

Explaining the rationale, Tinubu noted that the funds would support budget execution, finance critical infrastructure, and refinance existing high-cost debts. He added that the phased drawdown approach would help manage pressure on the country’s debt profile while ensuring liquidity for pressing national needs (The Guardian Nigeria).

In a related request, the President also asked the Senate to approve a $1 billion export credit facility from the United Kingdom, arranged through Citibank’s London branch. The loan is earmarked for the rehabilitation and modernisation of key maritime infrastructure, including the Lagos Port Complex and Tin Can Island Port—projects seen as vital to boosting trade efficiency and revenue generation, according to BusinessDay reports.

To facilitate the financing structure, Tinubu further proposed the issuance of naira-denominated government securities as collateral, alongside provisions for settling associated obligations in foreign currency.

The President disclosed that Nigeria’s public debt stood at approximately $110.3 billion as of December 31, 2025, underscoring the importance of carefully structured borrowing to avoid excessive strain on debt servicing. He maintained that the proposed facilities are structured to balance immediate fiscal demands with long-term sustainability.

The Senate’s rapid approval reflects the urgency attached to funding gaps in the 2026 fiscal cycle, as the government intensifies efforts to stabilise the economy while advancing key infrastructure projects. Analysts, however, say the development is likely to reignite debates over Nigeria’s rising debt burden and the pace of legislative scrutiny in approving major financial commitments.