The Senate on Tuesday approved a loan request by President Bola Ahmed Tinubu to secure new foreign loans totalling $6 billion for infrastructure development, debt servicing, and port rehabilitation.
The approval followed the consideration of two separate letters read during plenary by Senate President Godswill Akpabio.
In the first letter, President Tinubu sought approval for a $5 billion loan from First Abu Dhabi Bank in the United Arab Emirates (UAE). If fully drawn, the facility would raise Nigeria’s total public debt from $110.3 billion to $115.3 billion.
The President, who requested “urgent approval,” stated that the loan would be backed by naira-denominated securities.
In a second request, the President asked the Senate to approve a $1 billion loan for the rehabilitation of the Lagos Port Complex and Tin Can Island Port. The facility is being arranged by Citibank London and is backed by UK Export Finance (UKEF).
According to the President, the funding is intended to modernise the two Lagos ports, improve operational efficiency, enhance safety standards, and align port infrastructure with global best practices.
He noted that the rehabilitation would address longstanding structural deficiencies and support economic growth by boosting trade and logistics capacity.
The President added that the loan, if approved, has a repayment tenure of 14 years, including a 48-month availability period. He further stated that the terms include a 1.1 percent availability fee and a 1.07 percent UKEF premium.
Earlier, Chairman of the Senate Committee on Foreign and Local Loans, Senator Aliyu Wamakko, said the committee had conducted extensive deliberations on the requests before presenting its report to the Senate for approval.