Chinedu Obieze
The Federal Government has applied for $6 billion in new external loans from the United Arab Emirates (UAE) and the United Kingdom (UK) to fund the 2026 budget and close fiscal gaps.
President Bola Tinubu wrote the Senate on Tuesday, requesting a $5 billion facility from First Abu Dhabi Bank and a $1 billion loan from UK Export Finance. The Abu Dhabi tranche is aimed at plugging budget shortfalls, while the UK loan is targeted at rehabilitating Lagos ports and boosting infrastructure.
Senate President Godswill Akpabio read the request during plenary, formally beginning legislative scrutiny. Lawmakers are expected to debate the loans in the coming days, balancing the need for urgent infrastructure funding with concerns over rising public debt.
Analysts say the proposed borrowing underscores the government’s efforts to expand fiscal space but warn that careful management will be critical to avoid unsustainable debt levels.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.