The Nigerian Senate on Tuesday approved President Bola Ahmed Tinubu’s $6 billion external loan request to execute key infrastructure projects classified as national priorities.
The loan was approved following a report presented to the Senate by Senator Aliyu Wamako, who chairs the Senate Committee on Local and Foreign Debts.
News.ng reports that details of the loan indicated that $5 billion under the Structured Total Return Swap (TRS) – an external financing program which will be funded by First Abu Dhabi Bank will be released in tranches.
Also, $1 billion – an export finance facilitated by the United Kingdom (UK) with Citibank will be used to execute the reconstruction and rehabilitation of the Lagos Port Complex and Tin Can Island Port, established in 1921 and 1977, respectively.
Furthermore, the $6 billion will be used to augment the implementation of the 2026 Budget, funding key infrastructure projects, servicing existing domestic and foreign debts and meeting pressing financial obligations.
In the letter, the President noted that the phased loan would help cushion debt pressure.
Other approvals by the Senate include the issuance of naira-denominated federal government securities as collateral and the payment margin in U.S dollars.
Also, the Senate approves President Tinubu’s request for additional ₦9 trillion to raise the total budget from ₦58.4 trillion to ₦67.4 trillion.
