The Nigerian Senate has received separate loan requests from President Bola Ahmed Tinubu seeking approval for a combined $6 billion external financing programme aimed at boosting government liquidity and revitalising critical infrastructure.
The requests were read during plenary by Senate President Godswill Akpabio, who disclosed that the correspondence was transmitted to the National Assembly during its recent recess.
At the core of the proposal is a $5 billion Structured Total Return Swap (TRS) financing arrangement to be executed with First Abu Dhabi Bank. The facility is expected to be disbursed in tranches to support federal funding needs, enhance liquidity, and improve fiscal management.
President Tinubu noted that the request complies with provisions of the Debt Management Office Act 2003, which requires legislative approval for external borrowing.
According to details presented to lawmakers, the TRS programme will support budget implementation, infrastructure development, and the refinancing of existing debts, while providing flexibility to meet urgent financial obligations. The arrangement will involve the issuance of naira-denominated Federal Government securities as collateral, alongside dollar-based margin commitments.
The President acknowledged concerns over Nigeria’s rising debt profile, which stood at approximately $110.3 billion as of December 2025, with debt servicing projected at ₦20.5 trillion for 2026. He, however, assured that the phased drawdown structure would help manage debt sustainability risks.
In a separate request, Tinubu also sought Senate approval for a $1 billion loan facility backed by UK Export Finance and arranged by Citibank (London Branch) to rehabilitate the Lagos Port Complex (Apapa) and Tin Can Island Port.
The project targets the overhaul of ageing infrastructure at the two ports, which handle the bulk of Nigeria’s seaborne trade but have suffered decades of deterioration.
Tinubu described the intervention as a strategic modernisation effort to restore efficiency, improve safety standards, and align Nigeria’s ports with global best practices. He noted that inefficiencies have led to cargo diversion to neighbouring ports, particularly in Cotonou, undermining Nigeria’s competitiveness as a maritime hub.
The port rehabilitation project, already approved by the Federal Executive Council, will be executed under an Engineering, Procurement, Construction and Finance (EPC+F) model.
A breakdown of the facility shows:
$429.7 million for Lagos Port Complex
$571.1 million for Tin Can Island Port
The loan is expected to run for up to 14 years, with a drawdown period of 48 months.
Following the presentation, Akpabio referred both requests to the Senate Committee on Local and Foreign Debts for urgent review and recommendations.
Lawmakers are expected to weigh the fiscal implications of the proposed borrowing against Nigeria’s growing infrastructure needs, as the administration intensifies efforts to attract international capital and stimulate economic growth.
