HomeNationFG To Borrow N5.6tr For Financing Of Budget

FG To Borrow N5.6tr For Financing Of Budget

The Federal Government is to borrow N5.6 trillion from domestic and foreign sources to support the implementation of the N13.59 trillion budget.

The N5.6 trillion is the total deficit of this year’s N13.59 trillion budget.

Giving a breakdown of the borrowing plan in Abuja on Tuesday, Finance Minister Zainab Ahmed, also said the government is targeting about N850 billion from unclaimed dividends and dormant bank deposits.

She added that privatisation of some public assets valued at N205.15 billion might take place this year.

According to her, the government will raise N2.34 trillion each from domestic and foreign sources.

Multi-lateral and bi-lateral loan drawdowns will provide N709.69 billion.

Speaking on the unclaimed dividends and the dormant deposits, Ahmed said: “We have to get the exact report from CBN (Central Bank of Nigeria) and the registrars(of security firms) to ascertain that so it could be realised into this special a trust fund for unclaimed dividends and dormant account.”

The minister explained that government was also working with the CBN to regularise some previous borrowings.

According to her “We are working with the CBN to regularise the previous borrowing that have been made to turn them into formal borrowing by the Nigerian economy and to this extent, the CBN and I need to agree on the rates and the tenures and the cost of the borrowing, so we would be formally doing that in the early 2021 on the previous borrowing that has been made, and also projected borrowings in 2021. So we will design special instrument that limits what is done in terms of domestic borrowing from the CBN.”

The minister disclosed that government was assessing existing tax waivers to some organisations/ companies.

“What it’s costing us, we are now in the process of reviewing what can be scaled back because the size of the cost of the tax waiver is quite significant in terms of revenue for the country,” she said.

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