President Bola Tinubu has formally written to the Senate, seeking approval for fresh external borrowing totaling $6 billion to support key areas of the nation’s economy, including budget financing and major infrastructure rehabilitation.
The requests were conveyed in separate letters addressed to the President of the Senate, Senator Godswill Akpabio, and were read during Tuesday’s plenary session.
In the first request, President Tinubu asked the Senate to approve a $5 billion loan facility to be obtained from Abu Dhabi Bank. According to the letter, the proposed borrowing is intended to help the Federal Government address pressing fiscal needs, particularly in the areas of budget deficit financing, debt obligations, and other strategic government commitments.
The President explained that the loan forms part of efforts by the administration to maintain financial stability while ensuring the continued execution of government programmes and obligations. The request comes at a time when the government is facing mounting fiscal pressure and is seeking additional resources to support national development priorities.
In a separate correspondence, the President also requested legislative approval for a $1 billion loan facility described as a UK Export Finance-backed arrangement to be secured through London Citi Bank. The second facility is specifically targeted at the rehabilitation and upgrade of critical port infrastructure across the country.
Among the projects listed for the proposed intervention are the Lagos Port Complex and Tin Can Island Port, two of Nigeria’s busiest and most strategically important maritime gateways. The President said the rehabilitation projects are designed to tackle longstanding infrastructural and operational challenges affecting port efficiency and trade competitiveness.
According to the request, the planned port upgrades are expected to address major deficiencies within the facilities, improve cargo handling and turnaround time, enhance safety and operational standards, and strengthen the country’s logistics and maritime ecosystem.
President Tinubu further noted that the port rehabilitation is also intended to support the Federal Government’s broader economic agenda, particularly in the area of non-oil trade diversification. He stated that improving port infrastructure would not only boost commerce and ease of doing business, but also help position Nigeria as a more competitive regional and international trade hub.
The proposed investment in the port sector is expected to have a direct impact on import and export activities, reduce congestion, improve shipping operations, and create a more efficient environment for businesses that rely on maritime transport.
Following the presentation of the requests, Senate President Godswill Akpabio referred both loan applications to the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko, for further legislative consideration.
The committee is expected to examine the terms, purpose, and implications of the proposed borrowings and report back to the Senate for possible approval.
The fresh borrowing requests are likely to generate significant debate among lawmakers and the public, especially amid ongoing concerns about Nigeria’s rising debt profile and the need to ensure that borrowed funds are tied to projects and interventions capable of delivering measurable economic value.
If approved, the loans would form part of the Federal Government’s financing strategy aimed at bridging funding gaps, sustaining infrastructure development, and supporting economic growth.
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