Eighty-seven percent of 2022 budget will be financed by debt – FG


The Federal Government has said it will borrow N4.89 trillion in both domestic and foreign loans to finance the 2022 deficit budget of N5.62 trillion, putting Nigeria’s budget deficit at staggering 87 percent. 
Minister of Finance, Budget and National Planning Zainab Ahmed revealed during her presentation of the 2022-2024 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) to the House of Representatives on Monday.
The minister told the House Committee on Finance that the government was planning to cut down the capital expenditure of Ministries Departments and Agencies (MDAs) in 2022 budget by N259.3 billion.
She explained that the reduction became necessary, given the economic volatility occasioned by the unstable global oil market and economic effects of the COVID-19 pandemic.
“The deficit is going to be financed by new foreign borrowing and domestic borrowing, both domestic and foreign in the sum of N4.89 trillion. Then, privatisation proceeds of N90.73 billion and drawdowns from existing project titles of N635 billion,” she said. She also hinted to the lawmakers that the naira has been pegged at N410 to one dollar.
According to the Debt Management Office (DMO), Nigeria’s total public debt as of March 31, 2021, was N33.107 trillion.
The DMO said the total public debt stock comprising the debt stock of the Federal Government of Nigeria (FGN), 36 state governments and the Federal Capital Territory (FCT).
The debt stock also included promissory notes in the sum of N940.220 billion issued to settle the inherited arrears of the Federal Government to state governments, oil marketing companies, exporters and local contractors.
The report said that compared to the total public debt stock of N32.916 trillion as at December 31, 2020, a marginal increase of 0.58 per cent was recorded in the debt stock.

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