Tinubu Seeks Senate Approval for $6bn External Loans to Fund Budget, Ports Upgrade

President Bola Ahmed Tinubu has formally requested the Senate’s approval to secure external loans totalling $6 billion, as the Federal Government intensifies efforts to finance its budget deficit and upgrade critical infrastructure.

The request, conveyed in two separate letters to Senate President Godswill Akpabio and read during Tuesday’s plenary, outlines plans to obtain $5 billion from Abu Dhabi Bank and an additional $1 billion from Citibank.

According to the President, the larger facility will be used to support the country’s fiscal obligations and close funding gaps in the national budget, reflecting ongoing pressures on government finances amid rising debt servicing costs and revenue constraints.

The second loan, sourced from Citibank, is earmarked for the rehabilitation of key port infrastructure, including the Lagos Port Complex and Tin Can Island Port—two of Nigeria’s busiest maritime gateways. The proposed upgrade is expected to improve efficiency, enhance safety standards and boost non-oil exports.

Nigeria’s ports have long struggled with congestion, outdated facilities and inefficiencies that contribute to high logistics costs and delays in cargo handling. Industry stakeholders have repeatedly called for urgent reforms to modernise port operations and strengthen the country’s competitiveness in regional trade.

The latest borrowing plan comes at a time when Nigeria is grappling with a high debt burden, prompting debates among economists and policymakers about the sustainability of external borrowing. However, government officials argue that targeted investments in infrastructure are essential for long-term economic growth.

Following the presentation, the Senate referred the request to its Committee on Local and Foreign Debts, chaired by Aliyu Wamakko, for further scrutiny and legislative consideration.

Analysts say the outcome of the Senate’s review will be closely watched, as it will signal the legislature’s stance on the administration’s borrowing strategy and its broader economic reform agenda.

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