The Nigerian Senate on Tuesday approved President Bola Tinubu’s request for a $6 billion external loan, even as the President asked the National Assembly to endorse an upward revision of the 2026 Appropriation Bill by ₦9 trillion.
The approval of the loan followed the presentation of a formal letter from the President, which was read during plenary by the President of the Senate, Senator Godswill Akpabio.
The borrowing request forms part of the Federal Government’s 2025–2026 External Borrowing Plan, aimed at bridging budgetary gaps and financing critical national infrastructure projects.
The Senate granted approval barely three and a half hours after Akpabio read the President’s request on the floor of the chamber.
Lawmakers approved the facility after considering a report presented by Senator Aliyu Wamakko (APC, Sokoto North), Chairman of the Senate Committee on Local and Foreign Debts.
Earlier, President Tinubu had transmitted two separate letters to the Senate seeking approval for the loan facilities.
In the first letter, the President requested legislative approval to establish a structured total return swap (TRS) external financing programme of up to $5 billion with the First Abu Dhabi Bank of the United Arab Emirates.
Tinubu explained that the financing programme would be made available to Nigeria in tranches.
“The purpose of this letter is to request 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 President stated.
According to him, the proceeds from the facility will be used for budget implementation, development of priority infrastructure projects, and refinancing of relatively expensive domestic and external debts.
Tinubu added that the facility would also enable the Federal Government to meet urgent financial obligations when necessary.
He disclosed that Nigeria’s total public debt stood at $110.3 billion, equivalent to about ₦159.2 trillion as of December 31, 2025, noting that the loan would be drawn in phases to minimise pressure on the country’s debt stock and servicing obligations.
In a second letter, the President also sought approval for the issuance of naira-denominated Federal Government securities as collateral for the facility, as well as the payment of margining obligations in US dollars.
Tinubu further requested Senate approval for a $1 billion UK Export Finance (UKEF) loan facility arranged by Citibank, London, which will be used for the reconstruction and rehabilitation of the Lagos Port Complex and Tin Can Island Port.
Meanwhile, the President has also asked the National Assembly to approve an upward revision of the 2026 budget by ₦9 trillion, raising the proposed spending plan from ₦58.4 trillion to ₦67.4 trillion.
The request was also conveyed in a letter read by Senate President Akpabio during Tuesday’s plenary.
Tinubu explained that the proposed adjustment is aimed at improving fiscal transparency and ensuring the effective implementation of priority national programmes.
He said the proposed increase is driven by three major considerations, including the need to regularise outstanding legal commitments inherited from previous appropriation cycles so they do not disrupt the implementation of the 2026 budget.
The President also noted that the review would allow the government to properly capture existing public debt obligations within the fiscal framework, thereby improving clarity in the management of national finances.
In addition, the adjustment will create room for a limited number of strategic priority projects, while aligning the government’s financing plan in a manner that preserves macroeconomic stability and reduces pressure on the domestic financial market.
Tinubu had earlier presented the 2026 budget proposal of ₦58.18 trillion to the National Assembly in December, describing it as the “Budget of Consolidation, Renewed Resilience and Shared Prosperity.”
In the original proposal, the administration allocated ₦5.41 trillion to defence and security, representing about 9.3 per cent of the total expenditure, reflecting the government’s emphasis on strengthening national security.
Key projections in the budget include ₦34.33 trillion in expected revenue, ₦15.25 trillion for recurrent (non-debt) expenditure, and ₦26.08 trillion for capital projects.
The proposal also contains a ₦23.85 trillion fiscal deficit, equivalent to 4.28 per cent of Nigeria’s Gross Domestic Product (GDP).
Tinubu reiterated that his administration remains committed to fiscal discipline, transparent debt management and prudent public spending.
He added that the 2026–2028 Medium-Term Expenditure Framework and Fiscal Strategy Paper guiding the budget is based on key macroeconomic assumptions, including a crude oil benchmark of $64.85 per barrel, projected production of 1.84 million barrels per day, and an exchange rate of ₦1,400 to one US dollar for the 2026 fiscal year.
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