Nigeria To Borrow N1.59 Trillion To Fund 2020 Budget

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Nigeria To Borrow N1.59 Trillion To Fund 2020 Budget

Nigeria’s Debt Management Office (DMO) has said the country will borrow N1.549 trillion from domestic and international markets to fund its 2020 budget.

Director-General of the office, Patience Oniha, on Friday told journalists that N805 billion will be borrowed externally, while N744 billion will be borrowed from the domestic market.

Oniha said N150 billion of the required funds will be sourced through the sale of Sukuk bonds.

President Muhammadu Buhari approved a record 10.59 trillion naira ($34.6 billion) budget for 2020 in December, returning the country to the January-December budget cycle.

The budget assumes a deficit of 1.52% of the estimated gross domestic product while crude production is assumed at 2.18 million barrels a day with an oil price of $57 per barrel.

The Nigerian government had always lamented that the country is broke and pushed to policies to help the country’s revenue.

The government wants the present tax collection rate of about 6% of GDP to double by 2020 and has increased the value-added tax on goods from 5% to 7.2%.

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