Nigeria’s House of Representatives approved a plan to restructure 23.7 trillion naira ($52 billion) of short-term central bank loans into long-term debt, a day after it was approved by the Senate.
Nigerian government revenues are under pressure as oil theft in the Niger Delta has reduced oil production, forcing authorities to seek overdrafts from the central bank to cover the growing deficit.
In December, President Muhammadu Buhari asked Congress to restructure central bank lending. The approval of both houses of parliament allows Buhari to sign the law before stepping down this month after serving up to two terms.
A report by a Senate panel showed the funds are being used to support state governments and fund federal operations, with senators turning loans at 9% interest into 40-year debt.