The Federal Government is planning is planning to borrow the sum of N4.89trn to finance the 2022 budget.
Details of the spending is contained in the Medium Term Expenditure Framework/Fiscal Strategy Paper for 2022-2024.
The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, spoke on the borrowing during a public consultation of the Medium Term Expenditure Framework/Fiscal Strategy Paper for 2022-2024.
The preparation of the budget estimates for Ministries, Departments and Agencies usually take into consideration the Medium Term Policies/Strategies contained in the Expenditure Framework and Fiscal Strategy Paper which is the Federal Government’s pre-budget statement.
The MTEF/FSP outlines the development priorities of the Federal Government for the period covered.
The N4.89trn represents an increase of N207bn when compared to the N4.68trn borrowed in the 2021 fiscal period.
According to the 2022 MTEF, the Federal Government projected expenditure is put at N13.98trn, while the revenue expected to be raised to finance the budget is estimated at N8.35trn.
This leaves a deficit of about N5.63trn.
To finance this deficit, the government is projecting to raise N4.89trn from domestic and external sources.
A breakdown of the amount showed that while N2.446trn would be borrowed from external sources, about N2.44trn is expected to be raised from external loans.
Also, there are plans to raise the sum of N638.3bn through multilateral/bilateral project tied loans.
Further analysis of the MTEF showed that debt service is expected to gulp N3.6trn in 2022 as against N3.12trn in 2021.
The country’s States and Federal debt stock data total public debt portfolio stood at N33.11trn ($87.23bn).
For the Federal Government, its domestic debt stock has risen to N16.51tn ($43.51bn), while external debt in the country was N12.47tn ($32.9bn).
The Federal Government has been accused by analyst and Nigerians for its penchant for borrowing.