The Nigerian senate has given the federal and state governments approval to borrow $1.5 billion and €995 million loans.
The Senate President Ahmad Lawan-led parliament gave the approval at plenary on Wednesday.
The approval was given after the senate considered the report of the Committee on Local and Foreign debts.
The loans were part of the $5.5 billion and €995 million external borrowings President Muhammadu Buhari had, in May 2020, asked the Red Chamber to approve to finance various priority projects of the federal government and to support the state governments facing fiscal challenges.
Senator Clifford Ordia, Chairman of the Committee, had presented the report of his panel.
The Committee notes that while Nigeria’s Total Public Debt Stock is on the increase it is important to note that the Loan is in the immediate best interest of the Nigerian State and its citizens in dealing with the COVID-19 pandemic in a way that the economy will be positioned for quick recovery and resume growth
Meanwhile, development of the nation is the answer given by the presidency for critics of government borrowing.
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