The approval also included a borrowing request of 1.02 billion euros ($1.18 billion) and a grant of $125 million.

The bulk of the loans are from China, including from Chinese Exim Bank, Industrial and Commercial Bank of China and China Development Bank. Others include World Bank, African Development Bank, French Development Agency, European Investment Bank and Standard Chartered Bank with Sinocure.

A Senate committee on local and foreign debt said that a number of projects for which funding is being requested under the 2018-2020 borrowing plan were ongoing projects.

It added that $22.8 billion was approved under the 2016-2018 borrowing plan but only $2.8 billion had been disbursed.

President Muhammadu Buhari has made upgrading transport networks and improving outdated power grids the pillar of his administration, with a view to boosting agriculture and other non-oil industries to cut dependence on dwindling crude revenues. But funding has been a major constraint.

The projects to be funded cut across power, health, education, transport, identity management, climate and environment sectors.

The Senate committee said debt service has reached an all-time high of around 95% of retained revenue and 35.6% of annual expenditure, a huge drain on the country.

It added that debt service amount continues to increase as the revenue-to-debt ratio and tax-to-revenue ratios remain beyond acceptable levels.

The Senate also approved 500 million euros eurobond request for state-owned Bank of Industries (BOI).

($1 = 0.8648 euros)

(Reporting by Camillus Eboh; Writing by Chijioke Ohuocha; Editing by Toby Chopra)

By Camillus Eboh