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Osinbajo: How FG Will Finance 2021 Budget - Politics - Nairaland

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Osinbajo: How FG Will Finance 2021 Budget by TheRareGem1(f): 6:40am On Oct 11
...Says no Eurobond, FG prefers concessionary loans
Government may sell three plants
...N19.3bn earmarked as security votes for DSS, NIA, NSA, others


Vice President Yemi Osinbajo on Saturday shed light on the 2021 appropriations, saying the Federal Government would finance the budget with concessionary loans instead of commercial facilities.

He ruled out the possibility of patronising Eurobond.

He said concessionary loans attract between 1.5% and 2%, and have a longer tenor than commercial loans.

Osinbajo, who fielded questions from some editors at the Presidential Villa, described borrowing as an important part of financing budget, saying that economic growth would be difficult for Nigeria if the government did not borrow to develop infrastructure and create jobs.

He hinted that the government would sell some assets, including three power plants – Afam III, Aba Electricity Distribution Company and Yola Electricity Distribution Company.

The process for the sale of Yola Distribution Company has already been concluded.

Osinbajo also unfolded plans by the government to build 300,000 houses within 12 months as part of the Economic Sustainability Plan (ESP) of the Buhari administration.

He said the Petroleum Industry Bill (PIB) would determine the fate of the Nigerian National Petroleum Corporation (NNPC).

On the government’s plans to stimulate the economy, especially with the 2021 budget, the Vice President said: “Borrowing is an important part of financing budget. It is not particularly bad.

“An individual will say cut your coat according to your size. But for a nation, you are looking at more of cutting your coat according to your vision.

“You must have a vision, but between your vision and resources, there will always be a gap. So, there will always be a need to borrow.

“The main issue is: are you borrowing for what purpose? In this government, a lot of the foreign borrowing has been focused on infrastructure. All of this is to build an economy not only for today but for the future.

When we borrow for infrastructure, we create jobs and opportunities immediately. The moment you begin to invest in infrastructure, you create jobs.

“We are not likely to explore the Eurobond market; we are looking at concessionary financing which has an interest rate of 1.5% to 2% or even less. For 2021, we are looking at concessionary financing.”

He said the planned sale of some plants was part of the sustenance of the nation’s privatisation policy.

“There are three assets of the NIPP being considered for sale. We started considering three plants but that process was truncated by developments between 2018 and 2019,” he said.

He added: “We intend to look at all possible revenue generation sources but sale of assets is not a priority.”

Concerning the ESP, Osinbajo said: “I think there is wide variety of measures to stimulate the economy.

“The whole point of ESP is to get as many people back to work. We also want to make sure we use local resources. That is the only way to stimulate the economy.”

On the Mass Housing Scheme, Osinbajo said: “A part of the N2.3 trillion for ESP has been dedicated to low-cost housing. We have asked state governments to give us land free. We are building houses that will not exceed the value of N2 million.

“We are building 300,000 houses in 12 months. It is a very aggressive target, but we are hopeful of getting it done.

“We have about 12 states that have given us land. We insist on locally produced materials such that each site will be a place where people are producing.”

Asked about the proposed unbundling of NNPC, Osinbajo said: “We are all awaiting the PIB. It will determine what will be the right approach.”

N19.3bn earmarked as security votes for DSS, NIA, NSA, others

The Federal Government plans to spend the sum of 19,316,524,954 as security votes in 2021.

The said sum will be shared by the office of the National Security Adviser (NSA) which is expected to receive 5,400,000,000; the Defence Intelligence Agency (DIA) N4, 370, 510,916; and the Nigerian Army N4, 187,780,938.

In the budget, security votes are captured under recurrent items, meaning that the allocations will not likely be tampered with by the National Assembly during the budget review.

Others who will also get direct security votes from the budget are the Department of State Services (DSS), 1,800,000,000; Ministry of Defence (MOF), 1,520,000,000; Nigeria Air Force, 1,204,099,768; Nigeria Navy, 520,000,000; Defence Headquarters, 200,000,000 and Nigeria Intelligence Agency (NIA), 114,133,332.

Apart from these security votes in the budget, the federal government has offered to spend a lot of money on internal security in the new year, according to the budget breakdown released on Friday by the Budget Office of the Federation (BoF).

The Presidential Air Fleet (PAF) will not be buying new aircraft for the Presidency in 2021, but will engage in upgrades and repairs of old presidential air fleets.

In 2021, the PAF will carry out mandatory upgrade and installation of live TV and internet service on BBJ (5N-FGT) at a cost of 630,000,000; purchase new AW 139 helicopter gearbox at 1,650,020,000; comply with the mandatory upgrade on PAF aircraft at 1,800,000,000.

The PAF plans to overhaul the President’s Gulfstream G550, Falcon 7X and CL605 aircraft engines at a cost of 2,400,000,000 and overhaul the President’s Challenger 605 and Hawker 4000 aircraft landing gears at 1,100,543,000.

On the part of the armed forces and the supervising Ministry of Defence (MOD) Headquarters, the ministry will spend 189,367,410 on anti-personnel landmine demining in contaminated areas in the North East.

The ministry will also spend another 23,168,132 on verification/valuation for compensation of lands acquired by the Armed Forces of Nigeria; 50,000,000 on Armed Forces Remembrance Day Celebration and 45,000,000 to renovate three cemeteries in three geo-political zones.

https://thenationonlineng.net/how-fg-will-finance-2021-budget-osinbajo/

9 Likes 2 Shares

Re: Osinbajo: How FG Will Finance 2021 Budget by MAGG0T(m): 6:51am On Oct 11
Failed state with Useless President and Muppet VP.

A saner society would have addressed the issue ongoing in the country through live broadcast..but we have punk as a president who waits for his useless cabals to advise him on what to do..

46 Likes 8 Shares

Re: Osinbajo: How FG Will Finance 2021 Budget by Enudapan: 6:57am On Oct 11
Nah eh! No qualms
This is so sophisticated

Osinbajo my man
The odogwu in Aso rock

10 Likes 2 Shares

Re: Osinbajo: How FG Will Finance 2021 Budget by tillaman(m): 6:57am On Oct 11
sad
Re: Osinbajo: How FG Will Finance 2021 Budget by handie(m): 6:57am On Oct 11
Ok
Re: Osinbajo: How FG Will Finance 2021 Budget by GallantDuke(m): 6:58am On Oct 11
As usual;we will depend on oil to survive
Why didn't they want to buy another aircraft next year for the president? They should add more aircrafts because I am sure that our president will do a lot of traveling next year both the ones he missed this year all thanks to Covid-19 and that of next year

9 Likes 2 Shares

Re: Osinbajo: How FG Will Finance 2021 Budget by DenreleDave(m): 6:58am On Oct 11
grin
Re: Osinbajo: How FG Will Finance 2021 Budget by angelusbrut: 6:59am On Oct 11
Abi with our 50 naira stamp duty charge, story for the gods
Re: Osinbajo: How FG Will Finance 2021 Budget by chamboy(m): 6:59am On Oct 11
We can also generate more revenue by boycotting importation of white people's products.

I.e. imagine we ban car imports and force everyone to use inosson.
Ban iPhone and Samsung, make our own phones.

This can never happen, an average Nigeria has a romantic relationship with white man products.

14 Likes

Re: Osinbajo: How FG Will Finance 2021 Budget by Skynet45(m): 6:59am On Oct 11
angry Abeg osinbajo should take over from this old man and please all southerners let's prevent an abokki or any northerner from ever becoming president again .

#endSars
#BuhariResign

8 Likes

Re: Osinbajo: How FG Will Finance 2021 Budget by Godpikin4real(f): 6:59am On Oct 11
I weep for this nation especially this coming from a Prof.

4 Likes

Re: Osinbajo: How FG Will Finance 2021 Budget by pickatyou2: 6:59am On Oct 11
Endsars first

1 Like

Re: Osinbajo: How FG Will Finance 2021 Budget by buygala(m): 6:59am On Oct 11
Ok Sir...Just tell your your people to have small fear of God while looting the budgetary allocations smiley





I don't stand with #EndSars..I stand with #ReformSars particularly and #ReformtheNigerianPoliceForce..

As e dey go now, the #EndSars protests have been hijacked by Yahoo boys, prostitutes protecting their Yahoo Boy Customers, and even armed Robbers, kidnappers and murderers �

I detest SARS Officers for their high-handedness and abuse of power, but these SARS guys are a part of the Police force particularly dreaded by hardened criminals....this is because these criminals know these SARS guys are also hardened crooks themselves and are licensed to act swiftly and ruthlessly to curb crime�

You don't cut off your head just because your nose is ailing�
SARS as presently constitited have abandoned their primary assignment of apprehending armed robbers..after all SARS means "Special Anti-Robbery Squad...they have now taken or upon themselves to do EFCC's Job of apprehending Yahoo boys abi na suspected Yahoo boys, and have extended that to harassing citezens who make the mistake of appearing fresh, young and have the guts to have laptops and phones on them�

That nonsense must stop...but that does not mean SARS should be scrapped..They are an absolutely necesary evil�

In the whole mad hysteria which is the #endsars protest, Nigerians forget that there are more deadly police departments like the SACS (Special anti cultism Squad)
IGP X-Squad
Special Anti-Kidnapping Squad .

All these Squads are very joyless and are fully licensed to be as brutal, if not more brutal than the SARS Everyone is shouting about..
If the Police want to be mischievous, they will disband SARS and move all its officers to these other deadly squads for them to continue 'the Lord's Work"�

Shebi i have read of a case where Soldiers connived and kidnapped a young boy in Imo State, under the guise that he was being arrested on arrested on suspicion of being a Yahoo Boy..
After kidnapping the young boy and forcing him to pay more than 1million naira to them, they killed the boy, dumped his body in the bush, and made away with his Lexus Es350 car..This happened late last year abi na this year sef..
Because of that, why haven't we called for #EndNigerianArmy?�

I still remember how some officers of the same Nigerian Army killed many policemen while aiding the escape of a fugitive kidnapper in Taraba State..

We didn't call for #EndNigerianArmy because of that..

Point is..the fact of the existence of some Renegades in an organisation does not make that organization totally useless or worth discarding..

If the #EndSars protesters are truly serious, let us also end Nigerian Army because of their atrocities as well

8 Likes

Re: Osinbajo: How FG Will Finance 2021 Budget by kambili999(f): 7:00am On Oct 11
Hmmmm. These people are funny. What happened to abacha loot, money recovered from politicians who stole

Who are the advisers of these people?

Why must they sell power plants

Just look at the money appropriation to security whatever?

In all, this country is the biggest joke of whatsoever century we are in angry angry

3 Likes

Re: Osinbajo: How FG Will Finance 2021 Budget by sematec: 7:00am On Oct 11
shebi one day, na no go see anything sell for the country again.
Re: Osinbajo: How FG Will Finance 2021 Budget by ybalogs(m): 7:00am On Oct 11
EndSARS
Re: Osinbajo: How FG Will Finance 2021 Budget by Macphenson: 7:00am On Oct 11
Osibanjo is just a disgrace.

How did he even manage to become a SAN and a Professor of Law?

Not to add that he is a senior pastor in RCCG?

Nigerians a protesting against police brutality and as a SAN and Professor of law this is what he has to say at this point in time?

This reminds me of my grandfather's common saying " passing six is not passing sense"?

Meaning education is different from common sense.

8 Likes 1 Share

Re: Osinbajo: How FG Will Finance 2021 Budget by OlujobaSamuel: 7:00am On Oct 11
Through Borrowings.
No more, No less
What to spend money on;
Pay Salary, Pay for Borrowings, Little for project, Steal the rest.

3 Likes

Re: Osinbajo: How FG Will Finance 2021 Budget by Layoo91: 7:01am On Oct 11
Stupid government...

2 Likes

Re: Osinbajo: How FG Will Finance 2021 Budget by ybalogs(m): 7:01am On Oct 11
MAGG0T:
Failed state with Useless President and Muppet VC.

A saner society would have addressed the issue ongoing in the country through live broadcast..but we have punk as a president who waits for his useless cabals to advise him on what to do..

APC and their Animal supporters wouldn't like to be told the Truth, APC is an evil party, they've achieved all the came for, which is to spill blood
PDP Nko?Saint party?

1 Like

Re: Osinbajo: How FG Will Finance 2021 Budget by helinues: 7:01am On Oct 11
Hmmmm
Re: Osinbajo: How FG Will Finance 2021 Budget by omowolewa: 7:02am On Oct 11
Excessive Debt will put much pressure on citizens especially the Taxpayers.
Re: Osinbajo: How FG Will Finance 2021 Budget by endsars: 7:02am On Oct 11
Morning ENDSARS FIRST
NA PERSON WEY DEY ALIVE DEY SPEND BUDGET...

Meanwhile,
We develop websites for as low as 30k Visit us today Whatsapp 0 8 1 6 5 9 8 0 1 3 1 for our previous works and tell us your specifications
Re: Osinbajo: How FG Will Finance 2021 Budget by okefrancis: 7:02am On Oct 11
angelusbrut:
Abi with our 50 naira stamp duty charge, story for the gods
How does it become story to you?
Re: Osinbajo: How FG Will Finance 2021 Budget by kennyz247(m): 7:03am On Oct 11
ok
Re: Osinbajo: How FG Will Finance 2021 Budget by Hammyaladin(m): 7:03am On Oct 11
tg
Re: Osinbajo: How FG Will Finance 2021 Budget by annyplenty(m): 7:03am On Oct 11
The worldwide economic collapse prophesied in the book of revelation 6:5-6 is upon the nation's, including Nigeria.

The Corona virus pandemic has set the ball rolling for the fulfilment of that prophecy.

Let the Nigeria and Nigerians brace up and Prepare themselves for that.
Re: Osinbajo: How FG Will Finance 2021 Budget by Myde4naija(m): 7:03am On Oct 11
GallantDuke:
As usual;we will depend on oil to survive
diversification is not a magic, have you try to engage yourself in agribusinesses?

Diversification don't just happen.
Re: Osinbajo: How FG Will Finance 2021 Budget by jrusky(m): 7:03am On Oct 11
Pls we are not interested in this update us Òndo Election pls if Buhari like let him finance the budget by going back to Chin tun Chin in China for another dead end loan to finance it good for him everything with begining must have end on day.

Ondo election pls.......

1 Like

Re: Osinbajo: How FG Will Finance 2021 Budget by okefrancis: 7:04am On Oct 11
Layoo91:
Stupid government...
Don't you know that you are part of the government

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