The President. Major General Muhammadu Buhari (retd.), laying the 2021 Appropriation Bill to a joint session of the National Assembly in Abuja on Thursday (8/10/20). Photo: Olatunji Obasa
Nike Popoola, Okechukwu Nnodim and Temiloluwa O’Peters
Experts have expressed worry over the plan of the Federal Government to borrow N5.39tn to finance the funding gap in the 2021 budget.
According to the 2021 Appropriation Act which was recently signed into law by the President, Major General Muhammadu Buhari, the Federal Government also expects to realise N205.15bn from privatisation proceeds.
While he signed the 2021 budget, the President had highlighted both the deficit and the plan to borrow to fill the gap between the revenues the government plans to generate and the N13.59tn budget.
The government is expected to present details of the borrowing plan to the National Assembly soon.
However, providing an update on Monday, Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, said N2.34tn would be raised through domestic borrowing. Another N2.34tn will be borrowed from foreign sources.
From multilateral and bilateral loan drawdowns, the Federal Government plans to raise another N709.69bn.
This means that a total of N5.39tn will be borrowed from both the foreign and local debt markets. Thus, 39.66 per cent of the N13.59tn will be financed by debt.