N’Assembly Approves  Tinubu’s $6bn External Loans Request Hours After Presentation

By Rotela Oguns

The National Assembly has wasted no time in approving President Bola Tinubu’s $6 billion external borrowing request.

The president earlier today had sought the approval of the National Assembly on two separate loans from the United Arab Emirates and the United Kingdom.

Tinubu’s request which was contained in two letters separately addressed to  Tajudeen Abbas, the Speaker of the House of Representatives, and Godswill Akpabio, the  Senate President.

The two houses comprising the National Assembly read the letters during  their plenaries on Tuesday.

According to the first letter, Tinubu sought approval for a structured total return swap (TRS) external financing programme of up to $5 billion from First Abu Dhabi Bank of the United Arab Emirates.

“The purpose of this letter is to request for the approval and resolution of the national assembly pursuant to the provisions of section 21(1) and 27(1) of the debt management office establishment act 2003 to establish a structured total return swap (TRS) derivative external financing programme from First Abu Dhabi Bank of the United Arab Emirates of up to $5 billion which will be made available to the Federal Republic of Nigeria in tranches,” the letter read.

Stating the implications of the proposed borrowing on the country’s debt profile, Tinubu noted that  it would increase it to  $110.3 billion,  an amount equivalent to about N159.2 trillion in local currency.

According to the letter, Tinubu stating the purpose for the borrowing noted that it would be  used for budget implementation, development of priority infrastructure projects, and repayment of relatively expensive domestic and external debts.

In another letter, the president sought approval for a $1 billion UK export finance loan facility arranged by Citibank, London branch.

Tinubu said the loan would be used to reconstruct and rehabilitate the Lagos Port Complex and Tin Can Island Port.

During plenary at the green chamber, Abbas referred the letter to  the committee on aids, loans and debt management for further legislative action.

Abubakar Nalaraba, chairman of the committee, moved a motion for the report to be considered at the committee of supply.

Following Nalaraba’s motion, the house considered the report and approved the president’s request.

Also, the senate gave approval about three and a half hours after Akpabio read the president’s request during plenary.

The Red Chambers  granted the approval following the presentation of a report by Aliyu Wamakko, chairman of the senate committee on local and foreign debts.