FG to Borrow More to Fund 2019 Budget

By Modupe Gbadeyanka

Federal government of Nigeria has expressed its intention to seek funds from both the local and international investors to finance the 2019 budget worth N8.83 trillion.

Minister of Finance, Mrs Zainab Ahmed, made this known on Wednesday while briefing newsmen on outcome of the Federal Executive Council (FEC) meeting held in Abuja.

However, she stressed that the borrowings would be done on a 50:50 basis, with the main focus on concessionary long-term loans.

“We intend to fund the 2019 budget through borrowing locally and internationally with a spread of 50:50. Our focus is on concessionary long-term loans,” Mrs Ahmed told reporters.

Though government has been warned to be cautious of its borrowings, the nation has no other quick ways to raise money to fund the budget.

All efforts to diversify the economy and not depend solely on crude oil to generate revenue have not been too successful.

Since coming into office in mid-2015, President Muhammadu Buhari has financed most of his budgets with borrowed funds. This has made debt servicing obligations to be on the rise.

Speaking further yesterday, the Finance Minister said there are challenges generating revenue locally, while admitting that the 2018 budget actually performed well.