Senate Approves Tinubu's Request for $6 Billion Loan

On Tuesday, the Senate ratified President Bola Ahmed Tinubu's request for a new foreign loan totaling $6 billion, intended for infrastructure improvements, debt servicing, and the rehabilitation of ports.

This approval came after two letters were presented by Senate President Godswill Akpabio during a plenary session.

In the first letter, President Tinubu proposed securing a $5 billion loan from the First Abu Dhabi Bank located in the United Arab Emirates (UAE). Should this loan be fully utilized, it would increase Nigeria's total public debt from $110.3 billion to approximately $115.3 billion.

The President indicated the need for “immediate approval,” emphasizing that the loan would be secured through naira-denominated securities.

Additionally, in a second request, the President sought Senate endorsement for a $1 billion loan to facilitate the rehabilitation of the Lagos Port Complex and the Tin Can Island Port. This arrangement is being coordinated by Citibank London and is underpinned by UK Export Finance (UKEF).

As stated by the President, these funds are earmarked for modernizing the two ports in Lagos, improving their operational efficiency, enhancing safety protocols, and aligning the port facilities with international best practices.

He explained that the renovations aim to rectify long-standing structural issues and to bolster economic growth by expanding trade and logistics capabilities.

Moreover, the President remarked that, if the loan is sanctioned, it would come with a repayment period of 14 years, plus a 48-month availability timeline. The specified conditions include a 1.1 percent availability charge and a 1.07 percent UKEF premium.

Earlier, Senator Aliyu Wamakko, the Chairman of the Senate Committee on Foreign and Local Loans, mentioned that the committee had extensively discussed the loan requests prior to submitting its report to the Senate for approval.