The nation’s budget deficit has risen from N1.847 trillion to
N4.563trillion, it was learnt on Monday.
While the sum of N1.847 trillion budget was captured in the
original 2020 budget, the sum of N4.563trillion, is now projected
in the revised 2020 budget now before the National Assembly for
consideration and approval.
The Director General of the Debt Management Office, Patience
Oniha, disclosed this during her presentation before the Senate
Committee on Foreign and Local Debt considering President Muhammadu
Buhari’s $5.513 billion external loan request.
Oniha said that the revised 2020 budget proposal is N10.509
trillion with a deficit of N4.563 trillion.
She said that the deficit would be financed through domestic
borrowing of N2.188 trillion and external borrowing of N1.984
trillion making a total of N4.173.560 trillion.
She noted that the amount projected in the subsisting 2020
budget was N1.594.986trn.
She said the increase in the New Borrowing for 2020 is due to
the increase in the Deficit in the Budget from N2.18 trillion to
N4.58 trillion.
Oniha added: “The revision of the 2020 Budget became necessary
due to the effects of COVID-19 on Nigeria’s Revenues and the need
for new (previously unbudgeted) spending on health to meet the
health challenges occasioned by COVID-19.
“The subsisting 2020 Appropriation Act had a Total Expenditure
of N10.594 trillion and a Deficit of N2.175 trillion to be part
financed through New Domestic Borrowing of N744.98billion and New
External borrowing of N850 billion.
“The N850 billion New External Borrowing which was to be raised
through Eurobonds has been converted, with the approval of the
National Assembly, to Domestic Borrowing due to lack of access to
the International Capital Market at this time. Thus, the Total New
Borrowing which is all Domestic is N1.594 trillion.
“The proposed New Domestic Borrowing of N2,188.83 trillion will
be raised from the domestic market through the issuance of Federal
Government of Nigeria Bonds (FGN Bonds), FGN Savings Bonds, Sukuk,
Nigerian Treasury Bills and possibly, a Green Bond.
“As at May 29, 2020, a total of N1.319.99 trillion had been
raised. There is also an on-going Offer for Sukuk of N150
billion.”
She said that the DMO expected to raise the balance of N868.89
billion which is N2.188 billion less the N1.319 billion, in the
course of 2020.
The nation’s budget deficit has risen from N1.847 trillion to
N4.563trillion, it was learnt on Monday.
While the sum of N1.847 trillion budget was captured in the
original 2020 budget, the sum of N4.563trillion, is now projected
in the revised 2020 budget now before the National Assembly for
consideration and approval.
The Director General of the Debt Management Office, Patience
Oniha, disclosed this during her presentation before the Senate
Committee on Foreign and Local Debt considering President Muhammadu
Buhari’s $5.513 billion external loan request.
Oniha said that the revised 2020 budget proposal is N10.509
trillion with a deficit of N4.563 trillion.
She said that the deficit would be financed through domestic
borrowing of N2.188 trillion and external borrowing of N1.984
trillion making a total of N4.173.560 trillion.
She noted that the amount projected in the subsisting 2020
budget was N1.594.986trn.
She said the increase in the New Borrowing for 2020 is due to
the increase in the Deficit in the Budget from N2.18 trillion to
N4.58 trillion.
Oniha added: “The revision of the 2020 Budget became necessary
due to the effects of COVID-19 on Nigeria’s Revenues and the need
for new (previously unbudgeted) spending on health to meet the
health challenges occasioned by COVID-19.
“The subsisting 2020 Appropriation Act had a Total Expenditure
of N10.594 trillion and a Deficit of N2.175 trillion to be part
financed through New Domestic Borrowing of N744.98billion and New
External borrowing of N850 billion.
“The N850 billion New External Borrowing which was to be raised
through Eurobonds has been converted, with the approval of the
National Assembly, to Domestic Borrowing due to lack of access to
the International Capital Market at this time. Thus, the Total New
Borrowing which is all Domestic is N1.594 trillion.
“The proposed New Domestic Borrowing of N2,188.83 trillion will
be raised from the domestic market through the issuance of Federal
Government of Nigeria Bonds (FGN Bonds), FGN Savings Bonds, Sukuk,
Nigerian Treasury Bills and possibly, a Green Bond.
“As at May 29, 2020, a total of N1.319.99 trillion had been
raised. There is also an on-going Offer for Sukuk of N150
billion.”
She said that the DMO expected to raise the balance of N868.89
billion which is N2.188 billion less the N1.319 billion, in the
course of 2020.