Nigerian Senate President Ahmad Lawan

Legislators approve fresh $1.5bn, €995m loans for Federal, State Governments

*The Nigerian Senate has approved $1.5billion and €995million external loans for both Federal and State Governments for the funding of funding of critical infrastructure and agricultural mechanisation across the 774 Local Government Areas (LGAs) of the country

Alexander Davis | ConsumerConnect

Earmarked for funding of critical infrastructure and agricultural mechanisation across the 774 Local Government Areas (LGAs) in the country, the Nigerian Senate has approved the sums of $1.5billion and €995million external loans for both Federal and State Governments.

The Senate, also called the Red Chamber in the National Assembly (NASS), Abuja, FCT, gave the approval after considering the report of its Committee on Local and Foreign Debts on the external borrowing plan of the Federal Government.

Clifford Ordia, Chairman of the Committee, informed the lawmakers that the panel had considered the loan request and was recommending its approval.

ConsumerConnect reports the €995million loan is stated to have been earmarked for meant for agricultural mechanisation across the 774 LGAs in the country, while the $1.5billion loan will be used to fund critical infrastructure following the damaging impacts of the COVID-19 pandemic across the 36 states and FCT.

The loan is to be facilitated by the International Monetary Fund (IMF), World Bank, African Development Bank Group (AFDB), and Export/Import Bank of Brazil.

The lawmakers gave their nod for the loan request despite the fact that Nigeria is struggling under the weight of increasing public debt stock currently standing at N32.22 trillion as of September 30, 2020, report stated.

Kindly Share This Story