Senate backs Tinubu’s $6bn foreign loan plan
The Senate has approved a $6 billion external loan request from President Bola Tinubu to address fiscal gaps and fund infrastructure projects. The approval followed a report presented by Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debts. The loans include $5 billion from Abu Dhabi Bank for budget deficit financing and $1 billion from UK Export Finance for port rehabilitation. The decision highlights the government’s continued reliance on both domestic and external borrowing.
What we know
- The Senate approved Bola Tinubu’s request for $6 billion in external loans to finance key infrastructure and address fiscal shortfalls.
- $5 billion will be sourced from Abu Dhabi Bank for budget deficit financing and debt obligations, while $1 billion will come from UK Export Finance via Citibank to rehabilitate major ports.
- The projects target improvements at the Lagos Port Complex and Tin Can Island Port to boost efficiency and safety in Nigeria’s maritime sector.
- The Senate’s approval came after the presentation and consideration of a committee report led by Aliyu Wamakko.
- The government continues to depend on a combination of domestic and foreign loans to fund the national budget and infrastructure needs.
