Take a fresh look at your lifestyle.

Why FG is borrowing $3.3bn –DMO

The Debt Management Office (DMO) has clarified that the proposed $3.3 billion external borrowings is meant to finance part of the 2020 budget deficit of N2.18 trillion and refinance the Federal Government’s Eurobond maturing in January 2021.

President Muhammadu Buhari signed theN10.594 trillion 2020 Appropriation Act into law in December.

The president had in the budget proposed a capital expenditure of N2.465 trillion, recurrent expenditure of N4.842 trillion, statutory transfer of N560.4 billion, debt servicing of N2.72 trillion and fiscal deficit of N2.18 trillion.

READ ALSO: http://Transport ministry seeks approval to rehabilitate Port Harcourt to Maiduguri railway

According to the DMO, the Act provided N850 billion, as external borrowing to finance part of the budget deficit of N2.18 trillion. The proceeds, it said, would be used to finance projects included in the Act, including power.

The office also noted that the Federal Government plans to refinance a $500 million Eurobond maturing in January 2021 hence will need $3.3 billion to carry out the plans.

Said DMO, “In furtherance of the government’s commitment to develop infrastructure, the proceeds of the $2.786 billion will be used to finance Capital Projects in priority sectors of the economy that are included in the 2020 Appropriation Act.

Comments
Loading...