Nigeria gets approval to seek $22.7bn infrastructure loans

Nigeria’s Senate has approved President Muhammadu Buhari’s plan to borrow $22.7 billion from development banks and creditors to finance infrastructure projects. 

Lawmakers gave their endorsement to the government to seek the funding expected from the Islamic Development Bank, the African Development Bank, the World Bank and creditors in China, Japan and Germany. 

The government will use the money to expand the railways, build a new hydro power dam and fund special intervention projects across the West African nation 

While Nigeria’s outstanding loans amount to about about a quarter of its economic output, Africa’s largest oil producer spends more than half of its revenue servicing debts. The International Monetary Fund has warned that without major revenue reforms, the debts could rise to almost 36% of GDP by 2024, with interest payments taking as much as 75% of government revenue.