The Senate approved external loan requests of President Muhammadu Buhari worth 1.5 billion dollars and 995 million euros, equivalent of over 1 trillion-naira in total.
The approval was sequel to the consideration of the report of the Senate Committee Local and Foreign Debts presented by its chairman, Clifford Odia.
President Muhammadu Buhari had in May 2020, sent a letter to the Senate seeking its approval for another batch of external loans to enable the administration finance the 2020 budget deficit, critical projects, and support some states of the federation.
The federal government said the loans will be used to execute priority projects and support state governments in stimulating their economy, adversely hit by the COVID-19 pandemic.
In his presentation, Ordia noted that the borrowings are largely concessional loans with low interest rates and a reasonable moratorium and payback period.
Experts have expressed worry as Nigeria’s debt profile continues to rise over the years.
