The Nigerian Senate has approved President Bola Ahmed Tinubu’s request to secure $6 billion in external loans, creating fresh fiscal space to fund budget deficits and modernise key port infrastructure.
The approval followed the consideration of two separate requests presented during plenary by Senate President Godswill Akpabio, with lawmakers granting swift backing after an expedited review by the Committee on Local and Foreign Debts.
The approved facilities include:
· $5 billion from First Abu Dhabi Bank
o To support budget deficit financing and meet existing debt obligations
· $1 billion arranged by Citibank London and backed by UK Export Finance
o To rehabilitate the Lagos Port Complex and Tin Can Island Port
According to the President, the port upgrade is expected to tackle long-standing infrastructure decay, improve operational efficiency, enhance safety, and strengthen Nigeria’s global trade competitiveness.
Chairman of the Senate Committee on Local and Foreign Debts, Aliyu Wamakko, assured that the loans would be subject to strict legislative oversight to guarantee transparency and proper utilisation. He described the port rehabilitation as a critical intervention to reverse decades of underinvestment.
The approval comes amid rising concerns over Nigeria’s growing debt burden, which has surpassed ₦152 trillion, with a significant share of federal revenue going into debt servicing.
While the administration—led economically by Finance Minister Wale Edun—argues that borrowing is necessary to fund infrastructure and stimulate growth, critics have warned about the pace of new loans and the long-term burden on future generations.
Some lawmakers, including Ireti Kingibe, have called for clear repayment strategies to ensure the new borrowing does not worsen fiscal pressures.
The approval underscores Nigeria’s continued reliance on external financing to bridge its fiscal gap while investing in critical infrastructure, even as debates over debt sustainability and economic impact intensify.
