The approval by the President had raised question on the timing of the refund with concerns that the money might be used to influence the outcome of the election.
Three days to the Kogi State governorship election, the Nigerian Senate has approved the refund of N10bn loan to the state.
President Muhammadu Buhari had in late October sent a letter to the Senate, requesting an approval of the payment of N10bn to Kogi.
The approval by the President had raised question on the timing of the refund with concerns that the money might be used to influence the outcome of the election.
Senate President, Ahmad Lawan, had called for a debate on the report when presented by Chairman of Senate Committee on Local and Foreign Loans, Clifford Ordia.
Senate Minority Leader, Enyinnaya Abaribe, asked the upper legislative chamber to delay the payment until after the governorship election but Lawan declined, saying the Senate can approve the payment of the money anytime.
Lawan subjected the matter to a voice vote and ruled in favour of those supporting it.