Nigerian president, Muhammadu Buhari has submitted the borrowing plan for next year to the Senate.
This plan which amounts to N5.62 trillion and meant for Senate’s approval, will bring Nigeria’s total debt to N38.7 trillion.
As at March 31, 2021, the country’s debt profile was N33.1 trillion.
The new borrowing plan is contained in the 2022-2024 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) forwarded to the Senate by President Muhammadu Buhari for approval and is set for passage on Thursday.
Before the new borrowing plan was forwarded to the Senate, the Federal Executive Council (FEC) had deliberated on the plan last week Wednesday accepting the budget proposal of N13.98 trillion for next year with N9.16 trillion as projected revenue generation while the deficit of N5.26 trillion will be covered up with loans.
Minister of Finance, Budget and National Planning, Zainab Ahmed, while speaking to journalists, explained that the aim is to enhance the nation’s macro-economic situation and also restructure the economy.
According to the Minister:
“The MTF FSP consists of medium-term macro economic projections, fiscal targets and estimates of revenue and expenditure including government’s financial obligations.
“We have also presented to the federal government the projected revenues for the 2022 to 2024, specifically for 2022.
“The revenue that we expect is 6.54 trillion and 2.62 trillion to accrue to the Federation Account on VAT respectively. And then there will be net oil and gas revenue available for the Federation Account (FAAC) for distribution will be N6.15 1 trillion in 2022.
“This revenue is projected to increase in 2023 to N9.15 trillion. The total expenditure that we are expecting we have projected and approved by Council is an aggregate expenditure of N13.98 trillion which includes N1.1 trillion of government-owned enterprises expenditure as well as grants and donor funds donor funded projects in the sum of 62.24 billion.
“This means that this budget is just 3% higher than the 2021 budget in terms of the size of expenditure. We also reported to council the budget deficit and the financing items for the expenditure.
“The budget deficit that is projected for 2022 is 5.62 trillion, up from 5.60 trillion in 2021. This amount represents 3.05% of the estimated GDP, which is slightly above the 3% threshold that is specified in the Fiscal Responsibility Act.”
After receiving the document of the borrowing plan, by the strength of Order 1(b) of the Senate Standing Rules, Senate Leader, Yahaya Abdullahi moved a motion for the request to be considered immediately and forwarded the document to the appropriate committees for required legislative inputs and submission of report on Thursday.
The Minority Leader of the House, Enyinnaya Abaribe, upon secondment of the motion, the Senate President Lawan put it to voice votes and the Ayes had it.
However, Lawan forwarded the documents to the Senate joint Committees on Finance, National Planning, Banking, Petroleum (Upstream), Petroleum (Downstream), Foreign and Local Debts for needed consideration at the committee level.
“This is an important request from the President that must be considered and approved before we proceed on long recess Thursday this week.
“Therefore, the joint committee which is to be led by the Committee on Finance should use Tuesday and Wednesday to work on the request and submit report for final consideration and approval on Thursday,”