The Nigerian senate has approved fresh external loans of $1.5bn and €995m for the federal government.

The red chamber approved the foreign loans after considering the report of its committee on local and foreign debts during Wednesday’s plenary session.

Clifford Ordia, chairman of the committee, told the lawmakers that the panel had considered the loan request and was recommending its approval.

The €995m loan is meant for agricultural mechanisation across the 774 LGAs while the $1.5bn loan will be used to fund critical infrastructure in the aftermath of the COVID-19 pandemic across the 36 states and the federal capital territory.

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 that Nigeria is struggling under the weight of increasing public debt stock which stood at N32.22 trillion as of September 30, 2020.