The House of Representatives has approved an external loan of $1.5 billion and €995 million for the federal government.
This was after the recommendations made in a report submitted to the House by the House Committee on Aids, Loans and Debt Management presented to the House during plenary.
Presenting the report, the Chairman of the committee, Ahmed Dayyabu, stated that the loans are to be used in financing priority projects of the federal government.
The Lawmaker said the House has noted that the terms and conditions of the loans from each Lender as contained in a duly executed Loan Agreements be forwarded to the National Assembly for proper documentation.
He stated that President Muhammadu Buhari, had earlier sent the request for the approval of the house for the external loan.
This according to him led to the invitation of the Ministry of Finance, Budget and National Planning; Ministry of Agriculture and Rural Development and Debt Management Office on the matter.
He said, the COVID-19 Pandemic and the need to improve the nation’s economy in the areas of agriculture and other sectors as well as prioritise the need for strong infrastructure were the main reasons for the loan.
Alh Ahmed Dayyabu explained that the loans are to be sourced from the World Bank and Export-Import Bank of Brazil which will be used for various purposes as a result of the COVID-19 pandemic effects.
The Lawmaker added that, the loans were in the best interest of the nation and it is largely concessional loans with low interest rates and reasonable moratorium and payback period.