Sunday, October 18, 2026

Tinubu writes National Assembly, seeks $6 billion loan approvals for debt repayment, ports overhaul

Mr Tinubu stated that the loan would be disbursed in tranches to support federal funding needs and fiscal liquidity management.

• March 31, 2026
President Bola Tinubu
President Bola Tinubu (Credit: Bola Tinubu)

President Bola Tinubu has sent two separate letters to Senate President Godswill Akpabio, seeking the approval of the National Assembly to borrow external loans totalling $6 billion.

The letters were read on the floor of the House of Assembly by Mr Akpabio during plenary on Tuesday. The Senate President subsequently referred the requests to the Senate committee on local and foreign debts for further legislative action.

In the first letter, Mr Tinubu sought approval for a structured total return swap (TRS) external financing programme of up to $5 billion from First Abu Dhabi Bank of the United Arab Emirates.

He noted that the loan would be disbursed in tranches to support federal funding needs and fiscal liquidity management.

“The purpose of this letter is to request for the approval and resolution of the national assembly pursuant to the provisions of section 21(1) and 27(1) of the debt management office establishment act 2003 to establish a structured total return swap (TRS) derivative external financing programme from First Abu Dhabi Bank of the United Arab Emirates of up to $5 billion which will be made available to the Federal Republic of Nigeria in tranches,” the letter read.

Mr Tinubu noted that the proceeds would be used for budget implementation, development of priority infrastructure projects, and repayment of relatively expensive domestic and external debts, adding that the loan would also help the federal government meet urgent financial obligations when necessary.

The president said the proposed loan would increase the country’s public debt stock, noting that Nigeria’s total public debt currently stands at $110.3 billion, equivalent to about N159.2 trillion as of December 31, 2025.

He noted that the loan would be drawn in phases to minimise pressure on the country’s debt stock and servicing obligations.

The president also asked the Senate to approve the issuance of naira-denominated federal government securities as collateral for the loan and the payment of margining obligations in U.S. dollars.

In the second letter, Mr Tinubu sought approval for a $1 billion UK export finance loan facility arranged by Citibank, London branch.

He said the loan would be used for the reconstruction and rehabilitation of the Lagos Port Complex and Tin Can Island Port.

He added that the rehabilitation would help sustain Nigeria’s competitiveness as a maritime hub and support non-oil trade diversification, noting that the two ports handle the majority of Nigeria’s seaborne trade and serve as key entry and exit points for goods in the country.

“The rehabilitation of the ports project is a strategic modernisation initiative of the Federal Government of Nigeria through the Nigerian Ports Authority to restore and upgrade two of Nigeria’s most vital ports, namely Tin Can Island Port complex and Lagos Port complex Apapa, which have reached critical engineering failures,” the letter read.

According to the president, the project aims to address long-standing infrastructure deficiencies, improve port efficiency, enhance safety standards, and align Nigeria’s port facilities with global best practices.

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