Barring any last minute change in its fiscal policy, the federal government plans servicing the nation’s debt with ₦3.124 trillion out of the ₦12.658 trillion government hopes to spend in 2021.
The revelation was contained in the budget call circular released by the Budget Office of the Federation (BOF).
The document noted that Nigeria’s debt servicing obligations in 2021 would be made up of ₦2.183 trillion for domestic debt, foreign debt gets ₦940.89 billion, while ₦220 billion will take care of sinking fund to retire maturing loans from bonds and treasury Bills.
Of the total budget sum, ₦3.086 trillion (excluding capital component of statutory transfers) is being set aside for critical capital expenditure.
These include; ₦1.485 trillion for Ministries Departments and Agencies (MDAs)’ capital expenditure; ₦234.19 billion for capital supplementation; ₦337.06 billion for grants and donor funded projects; ₦20 billion for special intervention programme, ₦4335.59 billion for government-owned enterprises (GOEs); and ₦674.11 billion for multi-lateral and bi-lateral project-tied loans.
The circular said the thrust of government’s capital expenditure programme in 2021 “will be completion of as many ongoing projects as possible, rather than starting new projects.”
In view of this, the circular cautioned MDAs “that new projects will not be admitted into the capital budget for 2021, unless adequate provision has been made for completion of all.”
It further said the federal government “in furtherance of its inclusiveness agenda, intends to sustain the Special Intervention Programme (SIP). Accordingly, a total of ₦420 billion is proposed to be allocated to the SIP”.
On personnel management, the BOF said all MDAs must ensure compliance with Service-wide Circular Ref. No 58775//T/358 on ‘Streamlining Procedures for Recruitment into Federal Agencies’ issued by the Secretary to Government of the Federation (SGF) in respect of the procedure for recruitment into the public service”.
