The Nigerian Senate has approved President Muhammadu Buhari’s request to restructure N23.7 trillion in short-term loans owed to the central bank into long-term debt, according to meeting minutes from Wednesday.
The lower house of representatives was likely to approve the bill at a later meeting on Thursday, allowing Buhari to sign it into law before leaving office this month after serving the maximum two terms.
Some lawmakers questioned Buhari’s request to parliament in December, asking for more information on how the money was spent.
However, after a Senate panel reported on Wednesday that the money was used to support state governments and fund federal government operations, senators agreed to convert the short-term loans to 40-year debt at 9% interest.
Nigeria’s total debt might grow to $172 billion following the loan-to-bond swap and further borrowings to fund the 2023 budget, according to the Debt Management Office in January.
Official data show that Nigeria spent more than 90% of its revenue last year on debt repayments, leaving little for education and health, but Buhari has stated that his administration had no choice but to borrow its way out of two recessions in the last seven years.
