Lawmakers of Nigeria’s lower house of parliament, the House of Representatives has approved President Muhammadu Buhari’s request to borrow an additional $2.2 billion in temporary advances from the country’s central bank to help close budget gaps from last year, lawmakers announced on Tuesday.
Buhari asked parliament in December for permission to borrow an additional 1 trillion naira from the central bank, bringing the government’s total borrowing to 23.7 trillion naira ($52 billion).
The president also asked for permission to convert the temporary advance into 40-year bonds with a 9% interest rate in order to reduce interest payments, but lawmakers questioned the plan.
On Tuesday, lawmakers stated that they would meet with officials to discuss the plan to convert central bank borrowings to long-term debt.
The borrowing plan will need to be approved by lawmakers in the upper house of parliament, who are currently on recess to campaign for elections in March.
Buhari has stated that if parliament rejects the loan-to-bond swap, the country will pay an additional 1.8 trillion naira ($4 billion) in interest in 2023.