Tinubu Seeks Senate Approval For $6 Billion Foreign Loans Amid Rising Debt Concerns
New Borrowing Plan Heads to Senate for Approval
PRESIDENT Bola Ahmed Tinubu has sought legislative approval for a fresh round of external borrowing totaling $6 billion, as the Federal Government intensifies efforts to finance infrastructure and manage its debt profile.
The requests, read on the Senate floor by Godswill Akpabio, have been forwarded to the appropriate committee for detailed consideration.
Structured Financing from UAE
The bulk of the proposed borrowing—up to $5 billion—is expected to come from First Abu Dhabi Bank under a structured financing programme.
The administration plans to deploy the funds across multiple areas, including budget support, infrastructure development, and refinancing of costly debts.
The inclusion of a Total Return Swap structure signals a more complex financing model, designed to optimise repayment terms while leveraging government securities.
Officials maintain that the arrangement will reduce borrowing costs and improve fiscal management.
Strategic Port Upgrade Project
The second component of the borrowing plan involves a $1 billion facility from the United Kingdom, arranged by Citibank, targeting critical port infrastructure.
The rehabilitation of Tin Can Island Port and Lagos Port Complex is seen as a strategic intervention to address long-standing operational inefficiencies.
Government projections suggest that modernising these ports will improve turnaround times, enhance safety, and support Nigeria’s ambition to expand non-oil exports.
Debt Sustainability Debate Intensifies
The proposal has reignited discussions about Nigeria’s debt trajectory and fiscal sustainability.
According to the Debt Management Office, the country’s debt stock has grown significantly in recent years, with a substantial portion of government revenue now allocated to servicing obligations.
Experts warn that while borrowing is not inherently problematic, Nigeria’s limited revenue base poses a challenge to long-term sustainability.
Balancing Growth and Fiscal Responsibility
International partners such as the International Monetary Fund and the World Bank have advised the government to prioritise revenue mobilisation and ensure that loans are invested in projects capable of generating economic returns.
The Federal Government, however, insists that the proposed loans are essential for bridging infrastructure deficits and stimulating economic growth.
As lawmakers begin deliberations, the outcome of the Senate’s review will be crucial in shaping Nigeria’s fiscal direction and investor confidence in the months ahead.
