Tinubu Seeks Senate Approval for Fresh ₦9tn External Loan

By Abah Margaret

President Bola Tinubu has formally requested the approval of the Senate to secure fresh external loans totalling $6 billion—estimated between ₦9 trillion and ₦9.6 trillion—to support Nigeria’s financing needs.

The request was conveyed in two separate letters addressed to Senate President Godswill Akpabio and read during Tuesday’s plenary session.

In the first letter, the President sought legislative approval to obtain a $5 billion loan from Abu Dhabi Bank to help bridge the country’s budget deficit and meet existing debt obligations.

In a second correspondence, Tinubu requested approval for a $1 billion facility from London-based Citibank to fund the rehabilitation of critical port infrastructure nationwide. The projects are expected to cover upgrades to the Lagos Port Complex and Tin Can Island Port—two of the country’s busiest seaports.

According to the President, the port rehabilitation initiative is aimed at addressing long-standing infrastructure gaps, improving operational efficiency, enhancing safety standards, and boosting non-oil trade. He added that the move would strengthen Nigeria’s position as a competitive regional trade hub.

Following the presentation, Senate President Akpabio referred the requests to the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko, for further legislative scrutiny and expedited consideration.

The loan request comes amid growing concerns over Nigeria’s rising debt profile and increased reliance on external borrowing to finance budget deficits.

This development also follows the World Bank’s recent approval of a $1 billion Development Policy Financing loan for Nigeria under the initiative tagged “Nigeria Actions for Investment and Jobs Acceleration.”

According to the World Bank, the facility comprises a $500 million International Development Association (IDA) credit and a $500 million International Bank for Reconstruction and Development (IBRD) loan. The funding is aimed at strengthening ongoing economic reforms, promoting job creation, and accelerating private sector investment.

The programme, to be implemented through the Federal Ministry of Finance, is designed to consolidate Nigeria’s macroeconomic reforms and support a transition from economic stabilisation to inclusive growth.

Since 2023, the Tinubu administration has introduced several reforms, including the removal of petrol subsidy, unification of exchange rates, and the halt of central bank deficit financing. The government maintains that these measures have helped stabilise the economy, reduce the fiscal deficit, and restore investor confidence.

However, despite these efforts, economic growth remains modest, with over 130 million Nigerians still living in poverty.

The World Bank noted that although macroeconomic stability has improved, Nigeria has yet to achieve a decisive shift towards inclusive and sustained growth, highlighting the need for increased investment to drive productivity, diversify exports, and create jobs.