President Bola Tinubu has asked the national assembly to
approve external loans totalling $6 billion.
The request was contained in two separate letters addressed
to Godswill Akpabio, senate president, and read during plenary on Tuesday.
In the first letter, 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.
Tinubu said the facility 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.
The president said the proceeds would be used for budget
implementation, development of priority infrastructure projects, and repayment
of relatively expensive domestic and external debts.
He added that the facility would also help the federal
government meet urgent financial obligations when necessary.
Tinubu said the proposed borrowing would increase the
country’s public debt stock.
He said Nigeria’s total public debt currently stands at
$110.3 billion, equivalent to about N159.2 trillion as of December 31, 2025.
According to him, the loan would be drawn in phases to
minimise pressure on the country’s debt stock and servicing obligations.
Tinubu also asked the senate to approve the issuance of
naira-denominated federal government securities as collateral for the facility
and the payment of margining obligations in US dollars.
In another letter, the president sought approval for a $1
billion UK export finance loan facility arranged by Citibank, London branch.
Tinubu said the loan would be used for the reconstruction
and rehabilitation of the Lagos Port Complex and Tin Can Island Port.
“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.
The president said 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.
Tinubu added that the rehabilitation would help sustain
Nigeria’s competitiveness as a maritime hub and support non-oil trade
diversification.
He said the two ports handle the majority of Nigeria’s
seaborne trade and serve as key entry and exit points for goods in the country.
Akpabio subsequently referred the requests to the senate
committee on local and foreign debts for further legislative action.
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