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Nigeria’s Budget Deficit Increases to N4.5trn

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The deficit financing of the revised N10.509trn 2020 budget proposal has been placed at N4.563trn, the Debt Management Office has said.

As at December 2019, the subsisting 2020 Appropriation Actbhad a total expenditure of N10.594trn and a deficit of N2.175trn.

This coming after the National Assembly committees began the consideration of revised 2020 budget.

Currently, the revised budget proposal before the National Assembly has a deficit increased by N2.736trn to N4.563trn.

DMO Director-General, Patience Oniha, disclosed this during a meeting of the Senate Committee on Local and Foreign Debt on the external borrowing in the revised 2020 budget.

Oniha also said in the revised budget, the deficit would be part-financed through domestic borrowing of N2.188trn and external borrowing of N1.984trn.

“The proposed New Domestic Borrowing of N2,188.83trn will be raised from the domestic market through the issuance of Federal Government of Nigeria Bonds, FGN Savings Bonds, Sukuk, Nigerian Treasury Bills and possibly, a Green Bond.

“As of May 29 2020, a total of N1.319.99trn had been raised. “There’s also an on-going Offer for Sukuk of N150bn.” She said.

Recalled the Executive and the Legislature last year agreed on reversing the national appropriation to start in January and end in December.

Although formalities in respect of the 2020 budget were concluded before the end of 2019, the outbreak of the COVID-19 coupled with dwindling oil revenue for the government changed the whole ambitious projections of the 2020 Appropriation Act of the federal government.

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