The Minister of Finance, Mrs. Kemi Adeosun, Monday revealed government’s strategy for foreign loans that will be used to fund the 2016 budget.

According to a statement from the ministry issued by the Special Adviser to the Minister on Media Matters, Mr. Festus Akanbi, Mrs Adeosun disclosed that one of the options the federal government will explore will be to get credit from multi-lateral agencies like the World Bank and African Development Bank (AfDB).

“These Multilateral agencies provide loans on concessional terms, which include low interest, moratorium before repayment and long tenor.”

“The second funding option being explored includes Export Credit Agencies such as China Exim Bank. These funds are also concessional and are tied to specific capital projects,” the statement said.

The balance of foreign borrowing required will be raised in the Eurobond market at commercial rates of interest.



The Minister explained that by blending these different sources of funding, the overall cost of funds will be maintained at the lowest possible level, stating that “as far as possible, our foreign borrowing will be tied to specific capital projects. A number of these projects are revenue generating which will be used to fund the loan repayments.”

These capital projects include power, transport, road; housing etc. These capital projects include power, transport, road, housing etc.

The strategy of pursuing increased foreign borrowing is designed to ensure that the Federal Government does not “crowd out” the private sector in the domestic market.


It will be recalled that the Federal Government presented to the National Assembly a budget of N6.08 trillion with a N2.2 trillion deficit and a N1.8 trillion borrowing requirement.

luvinhubby:
Obvious lies.

Projected borrowing for 2016 budget at $38 per barrel of oil was 38%, current reality of $30 per barrel is 50% borrowing to break even in funding 2016 budget.

Recurrent expenditure - 70%
Capital expenditure - 30%

Implication: At least 20% of borrowing (N1.5 trillion or $7.5 billion) will be spent on recurrent.

APC should stop lying.

Obiagelli:
Nigeria 2008
external debt: $0.3 billion
external reserve: $40billion
Soveign wealth: $19 billion




Nigeria 2015 (4yrs of record oil prices)

external debt: $9.7 billion
external reserve: $19 billion
Soveign wealth: $1 billion

luvinhubby:

Nigeria's foreign debt as at 2008 was $4 billion.

Nigeria never had SWF till 2012.

NEXT!

luvinhubby:
Obvious lies.

Projected borrowing for 2016 budget at $38 per barrel of oil was 38%, current reality of $30 per barrel is 50% borrowing to break even in funding 2016 budget.

Recurrent expenditure - 70%
Capital expenditure - 30%

Implication: At least 20% of borrowing (N1.5 trillion or $7.5 billion) will be spent on recurrent.

APC should stop lying.

chinchum:
the price of oil is not static, 38usd is the avg for year 2016. it could fall to 15-20usd, and also climb to 80 usd some other time . Moreover, projected oil receipts is even less than non oil receipts.

Obiagelli:


SWF = ECA

foriegn debt= $3 billion

Obiagelli:


SWF = ECA

foriegn debt= $3 billion

chinchum:
the price of oil is not static, 38usd is the avg for year 2016. it could fall to 15-20usd, and also climb to 80 usd some other time . Moreover, projected oil receipts is even less than non oil receipts.

luvinhubby:

Foreign debt - $3.8 billion (approx. $4 billion)
ECA - Funds holding account.
SWF - Funds growing account

ECA accessible to sharing by RMFAC to 3 tiers of govt.
SWF invested funds that cannot be accessed by any 'bagger'.

Obiagelli:


Oil is not even the biggest source to fund the budget, try again

luvinhubby:

Non-oil exports projected at N1.2 trillion & i ask, 'WHAT & HOW'
Waiting for the magical 1.2 trillion non-oil exports.

adconline:

Keep deluding urself. Borrowing is a greater part of the budget, but its financing and repayment are to be made from oil proceeds.. Borrowing is not a source of income!!

Ioannes:
well I guess the only consolation in all these is that there won't be massive stealing of the loan under buhari as we witnessed with jona and baba iyabo.

borrowing is the only way to keep the country afloat with the oil price tending towards $0.

Tokt:


U can say this again. Towards the end of Jonah-daft tenure, the fool borrowed 1 billion dollars to purchase arms only for Dasuki and co to squander it.

chinchum:
the price of oil is not static, 38usd is the avg for year 2016. it could fall to 15-20usd, and also climb to 80 usd some other time . Moreover, projected oil receipts is even less than non oil receipts.

luvinhubby:
Obvious lies.

Projected borrowing for 2016 budget at $38 per barrel of oil was 38%, current reality of $30 per barrel is 50% borrowing to break even in funding 2016 budget.

Recurrent expenditure - 70%
Capital expenditure - 30%

Implication: At least 20% of borrowing (N1.5 trillion or $7.5 billion) will be spent on recurrent.

APC should stop lying.

Obiagelli:

Technicalities, nothing more. Countries name their savings in whatever they want, it all boils to the same thing SAVINGS

chinchum:
You want me to believe your 1.2 thrillion figure because you said it, prove it with a source.

Obiagelli:

Borrowing isn't the biggest source either. Try again

adconline:

You went from
3.9tn in 2015 to 6tn in 2016 and about 2.5tn will come from borrowing. You are increasing the national budget by more than 50% through borrowing..
Meanwhile capital budget is still pegged at 30%
Please we aren't mathematically challenged. Pls try and sell this dummy to follow-follow partisan brigands

luvinhubby:
ECA was not a SAVINGS account. SWF is a SAVINGS account.

adconline:

You went from
3.9tn in 2015 to 6tn in 2016 and about 2.5tn will come from borrowing. You are increasing the national budget by more than 50% through borrowing..
Meanwhile capital budget is still pegged at 30%
Please we aren't mathematically challenged. Pls try and sell this dummy to follow-follow partisan brigands

caleb404:


Obviously she thinks we all are zombies like her. She's one brainwashed woman on this forum who believes Buhari is the best invention after jollof rice.

Must be so painful now for them zombies watching their beloved messiah fumble and fumble.. I feel for them.

Obiagelli:

Putting money aside and not spending it is savings