The National Assembly on Tuesday approved President Bola Tinubu’s request to secure $6 billion in external financing to support the 2026 budget and rehabilitate critical infrastructure, including the Lagos Port complex and Tin Can Island Port.
The approval followed the consideration and adoption of reports by the Senate and House Committees on Loans and Debts.
In separate requests to both chambers, the President sought approval to obtain $5 billion from First Abu Dhabi Bank and an additional $1 billion from United Kingdom Export Finance (UKEF), facilitated by Citibank London and other financiers.
According to the President, the $5 billion facility will be used to bridge financing gaps in the 2026 budget, support key infrastructure and refinance existing obligations.
The $1 billion loan is designated for the reconstruction and modernisation of the Lagos Port complex, Apapa, and Tin Can Island Port in Lagos.
He explained that the $5 billion facility would be structured under a Total Return Swap (TRS) programme and disbursed in tranches to ensure sustainability in debt management.
‘The programme is intended to support budget implementation, funding key projects, refinance more expensive domestic and external debts, and meet other urgent financial needs’, the President stated.
He noted that Nigeria’s public debt stock stood at about $110.3 billion as of December 31, 2025, with a projected debt service of approximately N20.5 trillion for 2026.
The phased drawdown, he said, would help manage debt sustainability.
The National Assembly approved the proposal, including provisions for the issuance of Naira-denominated Federal Government securities as collateral for the facility.
It also endorsed margining arrangements requiring the government to make payments in the event of fluctuations in the value of the collateral due to exchange rate or market changes.
Lawmakers further authorised that the funds be applied to budget implementation, priority projects and the refinancing of relatively expensive debts in the government’s portfolio.
The $1 billion UKEF-backed facility is targeted at upgrading two of Nigeria’s busiest and most strategic ports, which have been in operation for decades and are in need of significant rehabilitation.
The project will be implemented by the Nigerian Ports Authority under an Engineering, Procurement, Construction and Finance (EPC+F) model.
A breakdown of the financing shows that $429.7 million is allocated to the Lagos Port Complex, including $373.2 million for commercial contracts and $56.5 million as UKEF premium.
Tin Can Island port will receive $571.1 million, comprising $496 million for commercial financing and $75.1 million for the premium.
The facility has a tenure of up to 14 years, with an availability period of 48 months. The UKEF premium, estimated at 1.07 per cent per annum, is payable upfront but may be financed as part of the loan.
The President said the port rehabilitation project is a strategic intervention aimed at addressing long-standing infrastructure deficits, improving operational efficiency and enhancing safety standards.
He added that the upgrade would align the facilities with global best practices, boost Nigeria’s competitiveness as a maritime hub and support economic diversification through increased non-oil exports.
‘The ports collectively handle the majority of Nigeria’s seaborne trade and serve as key gateways for imports and exports.
‘Their modernisation is critical to sustaining trade growth and improving logistics efficiency’, he said.
The proposal, he added, had already received approval from the Federal Executive Council.
During deliberations, Senate President Godswill Akpabio underscored the urgency of rehabilitating the ports, particularly Tin Can Island port, citing the deteriorating state of its infrastructure.
He noted that some of the port’s breakwaters date back to 1901 and have significantly degraded over time, affecting operations and safety.
‘The implication is that the current is too strong, and ships experience delays. Many now prefer to berth in neighbouring countries, making Nigeria less attractive for maritime business’, he said.
Akpabio commended the President for securing the financing arrangement, describing it as a positive outcome of Nigeria’s engagement with international partners.
“This is one of the gains of recent engagements with the United Kingdom. The results are beginning to show’, he added.
In the House of Representatives, lawmakers also gave expeditious approval to the requests after reviewing the report of the Committee on Aids, Loans and Debt Management.
The committee, chaired by Hon. Abubakar Nalaraba, recommended approval of the facilities, noting that they would address critical infrastructure gaps and strengthen fiscal capacity.
The House endorsed the phased disbursement of the $5 billion facility, as well as the application of the funds to priority sectors, including infrastructure development and debt refinancing.
Lawmakers noted that the borrowing plan aligns with the government’s broader economic objectives under the National Integrated Infrastructure Master Plan, particularly efforts to close infrastructure deficits and improve service delivery.
They also highlighted the importance of the maritime sector to Nigeria’s economy, describing it as a major gateway for international trade.
The rehabilitation of the Lagos and Tin Can ports, they said, would enhance port capacity, reduce congestion and improve turnaround time for vessels.
