The Senate on Thursday approved the $1 billion dollar loan requested by President Goodluck Jonathan to help the Nigerian Armed Forces in the fight against insurgency in the country.
The approval was given following the submission of the report of the chairman, Senate Joint Committee on Finance, Local and Foreign Debt, Ahmed Makarfi.
Makarfi said the request by President Jonathan for the loan is in full compliance with the law, adding that it was not in cash but supply of military hardware to be paid for, over the period of seven years.
It would be recalled that in a letter President Jonathan wrote to the Senate asking for the approval of the loan, he said he wanted the money to upgrade military equipment and for training as well as logistics for the Nigerian Armed Forces.
Makarfi said the interest rate of the loan could not be pointed out because it was the responsibility of the suppliers of the military hardware to negotiate such agreement.
He stated that the money will be used to procure the arms based on needs assessment of the country’s security agencies.
Senate President David Mark, who called for a voice vote to ascertain the approval or rejection of the request, told members of the house not to subject the matter to debate because of the security implication it might have.
Members of the Peoples Democratic Party voted for its approval while members of the opposition voted against the approval.