Olushola Omogbehin
The Nigerian Senate has granted the request of President Bola Tinubu to secure $6 billion external loans to finance important infrastructural projects.
President Tinubu’s latest loan request was contained in two different letters to the President of the Senate, which were read during plenary on Tuesday.
Tinubu requested in the first letter, the approval to establish a structured total return swap (TRS) external financing programme of up to $5 billion with First Abu Dhabi Bank of the United Arab Emirates.
In the second letter, he asked the Senate to approve a $1 billion UK export finance loan facility arranged by Citibank, London branch.
The two loans were approved by the red chamber of the National Assembly after the presentation and consideration of a report by the Senator Aliyu Wamakko-led Committee on Local and Foreign Debts.
According to President Tinubu, the projects will cover the Lagos Port Complex and Tin Can Island Port which are designed to reposition Nigeria’s maritime sector and tackle longstanding operational challenges
It will also address critical deficiencies, improve efficiency, enhance safety standards, support non-oil trade diversification, and position Nigeria as a trade hub.
Recall that the National Assembly approved Tinubu’s request four months ago, to raise N1.15tn from the domestic debt market to fund the 2025 budget deficit, effectively completing the government’s financing plan for the year.
