President Bola Ahmed Tinubu has formally requested Senate approval for new external loans totaling $6 billion to support infrastructure development, debt servicing, and port rehabilitation.
The request was conveyed in a letter addressed to Senate President Godswill Akpabio, which was read during Tuesday’s plenary session.
Breakdown of the Loan Request
The President is seeking:
- $5 billion facility from First Abu Dhabi Bank
- $1 billion loan for the rehabilitation of Lagos Port Complex and Tin Can Island Port
If approved, Nigeria’s total public debt is projected to rise from $110.3 billion to $115.3 billion.
Purpose of the Loans
According to the President, the funds will be used for:
- Infrastructure development
- Debt servicing and refinancing
- Modernisation of key port facilities
Tinubu explained that the port rehabilitation project, arranged by Citibank London and backed by UK Export Finance, is aimed at improving efficiency, safety, and operational standards.
He noted that the upgrades would address longstanding infrastructure gaps, align operations with global best practices, and support economic growth.
Loan Terms and Structure
The President disclosed that the facility will have:
- 14-year repayment tenure
- 48-month availability period
- 1.1% availability fee
- 1.07% UKEF premium
He also stated that the loan would be secured with naira-denominated securities as collateral.
Next Steps
Both loan requests have been referred to the Senate Committee on Local and Foreign Loans for further scrutiny, with a directive to report back to plenary as soon as possible.
DAILY TRUST
About the Author
