Tinubu seeks Senate approval for $6bn loan to fund budget, ports

President Bola Tinubu has asked the Senate to approve a combined $6 billion external borrowing plan, targeting budget support and the rehabilitation of key port infrastructure.

The request, contained in two separate letters addressed to Senate President Godswill Akpabio and read during Tuesday’s plenary, outlines plans to secure $5 billion from Abu Dhabi Bank and an additional $1 billion facility from Citi Bank in London.

According to the president, the $5 billion loan is intended to address budget deficits and support debt financing, as the government continues to manage fiscal pressures amid constrained revenue.

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In a separate request, Mr Tinubu said the $1 billion facility would be channelled into the rehabilitation of major port infrastructure, including the Lagos Port Complex and Tin Can Island Port.

He explained that the project is designed to fix critical inefficiencies, improve safety standards, and enhance the overall performance of Nigeria’s maritime sector. The move, he added, would also support non-oil trade diversification and position the country as a more competitive regional trade hub.

The ports, long plagued by congestion and operational bottlenecks, are considered central to Nigeria’s economic activity, particularly as the government seeks to boost exports beyond crude oil.

Following the presentation, Mr Akpabio referred the requests to the Senate Committee on Local and Foreign Debts, chaired by Aliyu Wamakko, for legislative review.

The committee is expected to scrutinise the proposals and report back to the Senate, as lawmakers weigh the implications of the new borrowing against Nigeria’s growing debt profile.

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While the presidency did not indicate a timeline for approval, the request adds to ongoing discussions around fiscal sustainability, infrastructure funding, and the government’s reliance on external borrowing to drive economic reforms.