The Senate approved the federal government’s $1.5 billion, Euro 995 million foreign loan today.
The Senate, headed by Senate President Ahmad Lawan, approved the bill in plenary on Wednesday.
The approval was given after the senate considered the report of the Committee on Local and Foreign debts.
The €995 million loans will be used to finance agricultural mechanization in the 774 LGAs, while the $1.5 billion loans will be used to fund essential infrastructure in the 36 states and the federal capital territory in the aftermath of the COVID-19 pandemic.
Senator Clifford Ordia, Chairman of the Committee, had presented the report of his panel.
The loan, according to Ordia, was to finance priority projects of the federal government and projects to support the state governments.
It is to be sourced from multilateral and bilateral institutions, including the World Bank, Export-Import Bank of Brazil, and Deutsche Bank of Germany.
Critics of the government have been complaining about the borrowings of the Buhari administration but the Federal Government has defended its action, saying it is meant for the development of the nation.