FG Exceeds Loan Target By N1.12tn, Borrows N5.3tn

Posted by Amarachi on Tue 01st Nov, 2022 - tori.ng

A copy of the public presentation of the 2023 proposed budget by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, showed that the Federal Government planned to borrow N6.10tn in 2022.

Mrs Zainab Ahmed

The Buhari-led federal government has exceeded its borrowing by N1.15tn  between the period of January and August 2022.

A copy of the public presentation of the 2023 proposed budget by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, showed that the Federal Government planned to borrow N6.10tn in 2022.

A breakdown shows that the Federal Government planned to get N3.53tn from domestic creditors and N2.57tn from foreign creditors.

According to the document, the Federal Government estimated that it would borrow N4.07tn between January and August 2022.

However, the Federal Government accumulated N5.33tn debt within the period under review, which is N1.15tn higher than the expected N4.07tn planned debt.

A further breakdown showed that the Federal Government borrowed N4.82tn from domestic creditors and N510.21bn from foreign creditors.

The debt from domestic creditors includes the Federal Government’s borrowing from the Central Bank of Nigeria through the Ways and Means Advances.

Ways and Means’s Advances are loan facilities through which the CBN finances the shortfalls in the government’s budget.
 

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