Senate has approved President Muhammadu Buhari’s request to borrow $2.7 billion (2.2 billion euros) from international institutions for infrastructure projects regarding oil and the Covid-19 pandemic.
This was revealed on Wednesday in a report by lawmakers who said they approved the external borrowing of $1.5 billion and 995 million euros from the World Bank, the Export-Import Bank of Brazil and Deutsche Bank.
The Nigerian economy which has recently experienced a decline in financial growth due to low crude prices now relies on crude sales for 90% of foreign exchange earnings.
The Minister of Finance, Zainab Ahmed also said the government would need to pursue external loans in order to effectively finance critical infrastructure.
The country resulted to borrowing externally to fund projects after a 2016 recession caused by low global oil prices which affected government’s spending plans.