The approval was sequel to the consideration of the report of the Senate Committee on Local and Foreign Debts presented by its Chairman, Sen. Clifford Ordia (PDP-Edo) during plenary.

The president had in May 2020 sent a letter to the senate seeking its approval for another batch of external loans to enable the administration to finance the 2020 budget deficit, critical projects, and support some states of the federation.

The Federal Government said the loans would be used to execute priority projects and support state governments in stimulating their economy adversely hit by the COVID-19 pandemic.

In his presentation, Ordia noted that the borrowings were loans with low-interest rates and a reasonable moratorium and payback period.