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Tag: external borrowing plan

  • We plan to borrow N4.28 trillion to finance 2021 budget, says Buhari

    We plan to borrow N4.28 trillion to finance 2021 budget, says Buhari

    President Muhammadu Buhari has presented the 2021 budget proposal of N13.08trillion to the National Assembly for consideration and passage into law.

    The News Agency of Nigeria (NAN) reports that the president, who was accompanied by Vice-President Yemi Osinbajo, some cabinet members and presidential aides, arrived the premises of NASS at about 11.03 p.m.

    He explained that the total aggregate revenue projected for the 2021 budget was N7.86 trillion with a deficit of N5.2 trillion, representing 3.4 per cent of the GDP.

    He said the deficit would be financed mainly by new borrowing, totalling N4.28trillion.

    Buhari stated that the total revenue available to fund the 2021 federal budget was estimated to N7.886trillion which included grants and aids of N354.85billion as well as revenues of 60 government-owned enterprises.

    According to him, the budget, which is described as a budget for Economic Recovery and Resilience, is based on an estimated oil price benchmark of 40dollars per barrel, daily oil production estimate of 1.86 million barrels (inclusive of condensates of 300,000 to 400,000 barrels per day) and an exchange rate of N379 per dollar.

    “Based on the foregoing fiscal assumptions and parameters, total federally distributable revenue is estimated at N8.433 trillion in 2021. Total revenue available to fund the 2021 Federal Budget is estimated at N7.886 trillion.

    “This includes Grants and Aid of N354.85 billion as well as the revenues of 60 government-owned Enterprises.

    According to him, oil revenue is projected at N2.01 trillion and non-oil revenue is estimated at N1.49 trillion.

    “As you will observe, the format of the 2021 Appropriation Bill has been modified to include budgeted revenues, no matter how small, for each MDA, to focus on internal revenue generation.

    “Accordingly, I implore you to pay as much attention to the revenue side as you do to the expenditure side.

    He stated that N3.12trillion had been earmarked for debt servicing in 2021 as against N2.1trillion in 2020

    The president, who reviewed the performance of the 2020 budget so far, said the budget was amended in response to the challenges occasioned by the COVID-19 pandemic.

    “As at July 2020, the Federal Government’s actual revenue available for the budget was N2.10 trillion.

    “This revenue performance was only 68 per cent of our pro-rated target in the revised 2020 budget.

    “At N992.45 billion, oil revenue performed well above our budget target, by 168 per cent. Non-oil tax revenues totalled N692.83 billion, which was 73 per cent of the revised target.’’

  • Do not lend Buhari any money – Bode George tells foreign nations

    Do not lend Buhari any money – Bode George tells foreign nations

    Chief Olabode George, a Deputy National Chairman of the Peoples Democratic Party (PDP) said foreign nations will be mocking Nigeria for borrowing money, he appealed to foreign countries not to lend President Muhammadu Buhari any money.

    George said this while reacting to the $29.96billion 2016-2018 external borrowing plan sent by President Buhari to the Senate for its consideration and approval.

    Bode George said borrowing funds from foriegn nation will not go down well with Nigerians, he lamented financial wastages going on in the country.

    Speaking to Daily Independent, George said: “President Buhari wants to go and borrow money now. They will ask him ‘look at the wastages in your country’. Why should they give him money? They should give him nothing.

    “How many African countries do you see these kinds of things? All these unnecessary adverts on CNN by Nigerian companies on products that are purely Nigerian is pure wastage.

    “ABSA bank in South Africa, have you ever seen them on CNN? Yet, their capital base is bigger than all Nigerian banks put together. So, what is this egocentrism all about? There are people who are hungry in this country.

    “All those money wasted on adverts will feed millions of people. I think the federal government should clamp down on them. For every one dollar, you spent on CNN adverts, you create a special purse for one dollar being put there. That money can then be used for skill acquisition for younger people. It is wasteful and egocentric.

    “We are the people who are buying your products, satisfy us and stop wasting money. Your systems are not healthy, bad network, poor data services and so on.

    “Look at Tony Elumelu doing adverts on CNN saying he is satisfying Africa. Has he satisfied his village? What about the poverty in his village?

    “I want to go with him to his village and see the level of poverty in that place. They are making the rest of the world to hate us.”