The Senate Committee Foreign Loans and Debt, led by Senator Shehu Sani, has suspended request for foreign loans by the Kaduna State Government.
Kaduna State had requested for a $350 million loan for Development Policy Operation from the World Bank.
Other states affected by the loan suspension were Jigawa, Ogun and Katsina.
The Kaduna State Governor, Nasir El-Rufai, has been in running battle with Sani.
El-Rufai also few weeks ago spoke against the Senate rejection of the Acting Chairman of the Economic and Financial Crimes Commission, Ibrahim Magu, saying President Muhammadu Buhari will not remove the anti-graft boss from office.
The Senate Committee, however, approved $200 million for Abia State, $150 million for Ebonyi State, $100 million for Kano State, $200 million for Ondo State and $100 million for Enugu State.
The recommendations of the Sani Committee were adopted by the Senate during the consideration of the report.
Sani hinged the refusal to approve the loan for Kaduna State on the need for phased approval of the loan.
He said: “The first phase of the loan request includes Abia, Ebonyi, Enugu, Kano, Ondo and Plateau States.
“The committee also observed that there was a shortfall of $100 million in the amount proposed in the President’s borrowing plan for Abia State, which the Federal Ministry of Finance agreed to in their presentation.
“The remaining four states in the borrowing plan be deferred.”