By Dipo Olowookere

The Debt Management Office (DMO) on Friday said Nigerian government was considering taking loan from foreign sources to fund the 2020 budget signed into law by President Muhammadu Buhari a month ago.

On December 17, 2019, Mr Buhari, who travelled to the United Kingdom today for an investment summit starting next Monday, signed the 2020 Appropriation Bill into law. His government proposed to spend N10.33 trillion in this fiscal year, which kicked off on January 1.

In a chat with newsmen today, Director General of DMO, Ms Patience Oniha, said the President Buhari administration was planning new borrowings of N1.60 trillion, with N850 billon (about $2.8 billion at an exchange rate of N306/$1) and N744.99 billion for external and domestic loans respectively.
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She noted that the foreign loans would come mainly from concessionary and semi concessionary sources due to the lower interest rate and longer tenors, adding that, “Any shortfall thereafter may be raised from commercial sources.”

The debt office noted that in the 2019 budget, a provision was made for an external borrowing of N802.82 ($2.62 billion), but this was never pursued due to late passage of the appropriation act.
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“The 2019 Appropriation Act provided for a total new borrowing of N1.61 trillion split equally between domestic and external, only the domestic component of N802.82 billion was raised due to the late passage of the 2019 Appropriation Act and the expectation that the implementation of the 2020 budget would commence on January 1, 2020,” the DMO said.

However, there are indications that the external borrowing will be done.

The debt office also said last year, the ratio of domestic debt to external debt stood at 69:31 as at September 2019, an improvement over the 71:29 as at September 2018 compared with the target of 60:40 in the Medium-Term Debt Management Strategy.
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It also said the ratio of long term to short term debt in the domestic debt as at September 2019 was 80:20, which shows that the target of 75:25 had been outperformed by September 2019, an improvement over the ratio of 73:23 recorded in September 2018.

https://businesspost.ng/economy/nigeria-considers-2-8bn-external-loan-for-2020-budget/

Cool
First to talk after 5years

K

CREDIT ALERT: to continue servicing some lavish lifestyle.

SoNature:
Every day, this government will be borrowing money up and down with absolutely nothing to show for it.

Who will pay all these loans?

Unfortunately, Me, you, and sadly our progeny.

By the time this this administration is through with us, Nigeria would be at auction on eBay, imagine our future debt

Every day, this government will be borrowing money up and down with absolutely nothing to show for it.

Who will pay all these loans?

Yeah, keep sinking our future citizens in debt.

Buhari is confused.

Been a while since I heard from the VP,hope all is well with them?..

This government is an example of

"One wrong step, can wreck a whole destiny"

This nation might soon be forgotten.

May God see us through.

Sai baba

Why does Buhari borrow for budget?

Next year they will still borrow

Our constitution gives room for theft and corruption, just imagine, one president or governor will borrow money and pocket it and after his tenure is over, he will go peacefully without accounting for his expenses and his successor will be the one to bear the burden. I guess that's what you get when you decide to do copy copy of oyinbo style instead of doing our thing our way.

This man from Daura is clueless and was a mistake that promised change

TSA, NPA, FIRS, NNPC, Customs etc are all generating revenue but this will never stop this "borrow borrow make me fine" government in Nigeria from mortgaging its present & future generation into eternal indebtedness. Enjoy next level.

TotoNaRubber:
Kemi Adeoshun the mentally deranged finance minister instigated "Borrow borrow borrow" without repayment plan"

Borrowing is good if the money is going to serve the purpose, you can't blame Kemi Adeosun for mismanagement on the part of the leadership because she didn't decide what to use the money for

Please PMB should just sell Nigeria and give me my own share na... because the way things a going I don’t understand anymore ooo

Buhari will finally sink Nigeria before 2023.
The incoming president will definitely have nothing to steal again.

aah!

Barman two bottles round for everyone.
Not surprised. I pray to God to make the life all those supporting this rogues of a government to always lack and borrow to survive. Amen

I’m thinking this is FNews cause I keep hearing that customs generated XYZ and even exceeded their targets by ABC. NNPC generated WXY amount and plan to sell another kinda fuel for 97.00 naira. FIRS did this and that. The other way did what and not the other. Oluwa save this nation.

They borrow to service budget every year
Tufiakwa to this corrupt entity called Nigeria

I feel so sorry for our children and their children.

When dem call person "borrow borrow" those days, na very bad word wey reach to cause war oh..

TotoNaRubber:
Kemi Adeoshun the mentally deranged finance minister instigated "Borrow borrow borrow" without repayment plan"

Please leave Kemi out of this.

Nigeria has a new finance minister now.

Address the issue properly.

It appears she's just another fine lady with an empty medulla oblongata

[s]

Agricaddict:
Borrowing is good if the money is going to serve the purpose, you can't blame Kemi Adeosun for mismanagement on the part of the leadership because she didn't decide what to use the money for

[/s]Chronic indiscriminate taxation or borrowing by this rudderless government confirms its utter hypocrisy, cluelessness, financial indiscipline and corruption.

No nation survive economically on senseless borrowings not when such is to service debts as that is not debt payment especially in an economy that is import dependent.

TotoNaRubber:
Kemi Adeoshun the mentally deranged finance minister instigated "Borrow borrow borrow" without repayment plan"

She was acting on instructions.

This administration has borrowed money every year since it cane into power with no project to show for

Thank God Yorubas are slowly and steadily restructuring

by the time we take most of our National Assets (Roads, Stadia etc),
have two state owned Deep seaport (Ibejulekki and Ondo)
Have Our own secuirity "AMOTEKUN"
Have the largest refinery on our soil

This knuckle heads can kill themselves with debt, thinking another Yoruba man would help them beg like Obasanjo for debt relief..

Last Last after we get killed by debt burden and all our National income goes to debt servicing, only the region with state Internaly Generated Revenue would survive by that time Poverty level in their region would be 100% by that time they would look back and start cursing their leaders


.

Cletus77:
This man from Daura is clueless and was a mistake that promised change

He is deliberately attempting to sabotage Nigeria. His definition of Nigeria differs from ours. He has handpicked fellow initiates to cripple certain sections of the country.