Nigeria’s total public debt is projected to rise to about ₦155.1 trillion following President Bola Tinubu’s request for an additional $6 billion loan, which was approved by the Senate within hours.
Based on an exchange rate of ₦1,400 to the dollar, the new borrowing is expected to add approximately ₦8.4 trillion to the country’s existing debt stock, which stood at ₦146.69 trillion at the end of 2025. Analysts have raised concerns that the increase could heighten foreign exchange risks and further strain the government’s debt service obligations, already estimated at around 60% of revenue.
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The Senate’s approval came shortly after the President’s request was presented during plenary. The proposal passed through first, second, and third readings on the same day before being adopted following the consideration of a report by the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wammakko.
President Tinubu’s request was outlined in two separate letters. One sought approval for a structured total return swap (TRS) financing arrangement of up to $5 billion with First Abu Dhabi Bank in the United Arab Emirates. The facility is designed to be disbursed in tranches and backed by naira-denominated Federal Government securities as collateral.
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The President explained that the funds would be used for budget support, infrastructure development, and refinancing of existing debts, while also helping the government meet urgent financial obligations. He also requested approval for issuing naira-denominated securities as collateral and for margin payments to be made in US dollars.
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In addition, a separate $1 billion loan from the United Kingdom’s export finance scheme, arranged through Citibank’s London branch, was proposed to fund the rehabilitation of the Lagos Port Complex and Tin Can Island Port. The project is intended to improve port infrastructure, reduce congestion, enhance efficiency, and align Nigeria’s ports with international standards, thereby supporting trade and economic activity.t
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