The Federal Government says it has allocated N6.6 trillion to debt service in the 2023 budget signed by President Muhammadu Buhari on Tuesday at the Presidential Villa in Abuja.
Recall that the 2023 appropriation bill was increased by N1.32 trillion to N21.83 trillion, from the N20.51 trillion proposed by President Buhari.
Details of the signed budget revealed that debt servicing was also increased to N6.6 trillion from N6.31 trillion, as the World Bank complained of its impact on Nigeria’s revenue.
Nigeria’s external debt was $18.8 billion in 2010, but rose to $76.2 billion last year.
In 2021, the government had borrowed about N6.3 trillion within 10 months from the central bank, raising the CBN loan to FG from N17.5 trillion in December 2021 to N23.7 trillion in October 2022.
Meanwhile, President Buhari said it will cost the federal government N1.8 trillion in interest if the national assembly fails to approve N23.7 trillion in extra-budgetary spending.
The president had asked the national assembly to approve the sum he said were funds provided by the Central Bank of Nigeria (CBN) through loans for “emergencies” in the space of 10 years.
Last week, the senate suspended the request of Buhari after a rowdy session.
Senators Betty Apiafi and Thompson Sekibo had argued that the request was not constitutional.
They also demanded that before the upper legislative chamber could approve the request, the senate must have the details of what the funds were spent on.
Speaking at the signing ceremony of the 2023 budget in Abuja on Tuesday, Buhari said he has no intention to contest the decision of the lawmakers.
“I also urge the national assembly to reconsider its position on my proposal to securitise the federal government’s outstanding Ways and Means balance at the Central Bank of Nigeria (CBN),” the commander-in-chief said.
“As I stated, the balance has accumulated over several years and represents funding provided by the CBN as lender of last resort to the government to enable it to meet obligations to lenders, as well as cover budgetary shortfalls in projected revenues and/or borrowings.
“I have no intention to fetter the right of the national assembly to interrogate the composition of this balance, which can still be done even after granting the requested approval.
