Nigeria to Borrow N5.6 Trillion and sell off some government owned properties to fund 2021 budget deficit

The Nigeria government has said to borrow the sum of N5.6 trillion and sell off some government-owned properties as well as non-oil assets to fund the 2021 budget deficit.

The overall deficit stood at N5.60tn for 2021.This represent 3.93 of GDP.budget deficit to be financed mainly by borrowing with domestic sources of N2.34tn and foreign sources of N2.34tn and multi-lateral/Bi-lateral loan draw-downs N709.60bn including privatization proceeds N205.15bn

Minister of Finance, Zainab Ahmed, disclosed this during the budget presentation ceremony which was done virtually on Tuesday, January 12.

In November 2020, the Bureau of Public Enterprise in a document presented to the Senate committee on Privatization disclosed that the Federal government plans to sell the Integrated Power Plants in Geregu, Omotosho, and Calabar at N434 billion in 2021.

The document presented indicated plans by the Federal government to also concession the National Arts Theatre, Tafawa Balewa Square, and all the River Basin Development Authorities at N836 million while the National Stadium in Lagos, the Moshood Abiola Stadium, Abuja, and two others were pegged for concessioning at N100 million.

In 2020, the Federal Government said it spent N3.27 trillion on debt servicing alone while personnel cost, including pensions, gulped another N3.19 trillion.

Speaking on 2020 expenditure, Ahmed said “Of the expenditure, N3.27tn was for debt service representing an increase of N445.57 billion from N2.68 trillion in 2020 and N3.19tn for personnel cost, including pensions.

budget deficit.

President Buhari had on December 31, 2020, signed the N13.58 trillion budget for 2021.

 

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