Nigeria Approves $6 Billion Foreign Loans for Budget Support and Port Rehabilitation

Nigeria’s National Assembly approved President Bola Tinubu’s request to borrow $6 billion from foreign lenders—$5 billion from First Abu Dhabi Bank and $1 billion from the UK—to support the 2026 budget and rehabilitate Lagos’s major ports. The rapid approval sparked criticism over debt implications, but the government said the funds are crucial for strategic infrastructure upgrades and economic development ahead of next year’s elections.

Nigeria is preparing to secure at least $6 billion in foreign loans to address pressing economic and infrastructural challenges, following approval from both chambers of the National Assembly on Tuesday, 31 March. President Bola Tinubu submitted formal requests to borrow $5 billion from First Abu Dhabi Bank and an additional $1 billion from the United Kingdom Export Finance (UKEF). According to government sources, a significant portion of these funds will be directed toward supporting the country’s $49.4 billion 2026 national budget, which was also approved by the legislators on the same day. Another important component of the borrowing plan involves financing the rehabilitation and modernization of two of Nigeria’s major ports located in Lagos, namely the Tin Can Island Port complex and the Lagos Port Complex, which the administration says have reached critical engineering failure points.
The National Assembly approved the loans within hours of receiving the requests, a rapid pace that has drawn criticism from some quarters of the political spectrum. Former Vice President and opposition leader Atiku Abubakar raised concerns over the potential economic implications of the new debt, emphasizing that such decisions should not be taken lightly and must be preceded by thorough scrutiny and due diligence. In response, the federal government defended the borrowing, with President Tinubu highlighting that the port rehabilitation project is a strategic initiative aimed at modernizing Nigeria’s key maritime infrastructure. He underscored the importance of the ports as vital hubs for trade and economic activity in the country and emphasized the need to address their deteriorating conditions to prevent operational disruptions.
The decision to secure external financing comes shortly after President Tinubu’s recent visit to London, where Nigeria and the United Kingdom signed a deal worth nearly $1 billion with a British firm to support the planned upgrade of the ports. The move is part of a broader strategy by the administration to attract international investments and partnerships aimed at bolstering Nigeria’s infrastructure and economic development.
According to the Nigeria Debt Management Office, the country’s total outstanding government debt, including both domestic and foreign obligations, stood at $103.9 billion as of September 2025. This represents an increase of approximately $15 billion from the total debt recorded a year earlier. Since assuming office after the 2023 elections, President Tinubu has consistently pledged to transform Nigeria’s economy, one of the largest on the African continent. His stated goals include improved management of the critical oil sector, expansion and modernization of infrastructure, job creation, and reduction of poverty levels across the country.
With the next presidential elections less than a year away, President Tinubu is widely expected to seek a second term in office. Observers note that economic performance, fiscal management, and debt sustainability will likely be central issues in the upcoming campaign, as voters assess the administration’s ability to address Nigeria’s ongoing economic challenges while maintaining macroeconomic stability and fostering development. The approval of the $6 billion foreign loans represents a significant step in the government’s efforts to finance key development projects, while also drawing attention to the balance between borrowing and long-term debt sustainability in the lead-up to the elections.