KEY POINTS
- The Senate approved President Tinubu’s $6 billion external loan request within three and a half hours of submission.
- The package includes a $5bn TRS financing from First Abu Dhabi Bank and a $1bn UK export finance facility via Citibank London.
- Nigeria’s public debt stands at $110.3 billion (N159.2 trillion), fueling concerns over increasing borrowing.
Nigeria’s Senate has approved President Bola Tinubu’s request to secure external loans totaling $6 billion, just three and a half hours after the proposal was presented before lawmakers.
The approved borrowing plan comprises a $5 billion structured total return swap (TRS) external financing programme with First Abu Dhabi Bank of the United Arab Emirates, alongside a $1 billion loan facility from the United Kingdom’s export finance system arranged through Citibank’s London branch.
The federal government said the proposed funds would support budget implementation, finance infrastructure projects, and help manage existing debt obligations.
Lawmakers Back Borrowing Despite Rising Debt Profile
The approval comes as Nigeria’s public debt continues to climb. As of December 31, 2025, the country’s total public debt stood at $110.3 billion, equivalent to about N159.2 trillion, raising concerns about debt sustainability and fiscal pressure.
Despite the growing debt burden, lawmakers endorsed the request, clearing the way for the executive to proceed with the financing arrangements aimed at supporting government spending and economic development priorities.
