FG to Spend ₦3.12 trillion to Service Nigeria’s Debts in 2021
The Federal Government of Nigeria has earmarks a total sum of ₦3.12 trillion to service the nation’s debt book in 2021, representing 24% of the total spending plan.
The detail of the plan surface at the recent presentation of the 2021 spending plan totaled ₦13.08 trillion to the National Assembly Thursday.
FG says it remains committed to meeting the nation’s debt obligations as ₦3.12 trillion is earmarked for debt service in 2021 budget proposal.
President Muhammadu Buhari explained the detail while presenting ₦13.08 trillion budget proposal in Abuja on Thursday.
According to him, the amount represents an increase of ₦445.57 billion from ₦2.68 trillion in 2020.
“We remain committed to meeting our debt service obligations.
“Hence, we have provisioned ₦3.12 trillion for this in 2021, representing an increase of ₦445.57 billion from ₦2.68 trillion in 2020.
“A total of ₦2.183 trillion has been set aside to service domestic debts while ₦940.89 billion has been provided for foreign debt service.
“₦220 billion is provided for transfers to the Sinking Fund to pay off maturing bonds issued to local contractors and creditors.’’
On the breakdown of the budget, Buhari said ₦3.85 trillion had been earmarked for Capital Expenditure.
He said: “An aggregate sum of ₦3.85 trillion is expected to be available for capital projects in 2021.
These, he said are ₦1.80 trillion for MDAs’ capital expenditure; ₦745 billion for Capital Supplementation; ₦355 billion for Grants and Aid-funded projects and ₦20 billion for the Family Homes Fund.
Others are ₦25 billion for the Nigeria Youth Investment fund; ₦336 billion for 60 Government Owned Enterprises; ₦247 billion for capital component of Statutory Transfers; and ₦710 billion for projects funded by Multi-lateral and Bi-lateral loans.
According to the president, the 2021 capital budget is ₦1.15 trillion higher than the 2020 provision of ₦2.69 trillion.
He noted that, at 29 percent of aggregate expenditure, the provision moves closer to this administration’s policy target of 30 percent.
Buhari stated that the capital expenditure in 2021 remains focused on the completion of as many ongoing projects as possible, rather than the commencement of new ones.
He further disclosed that key capital spending allocations in the 2021 Budget include:
‘Power: ₦198 billion (inclusive of ₦150 billion for the Power Sector Recovery Plan); Works and Housing: ₦404 billion; Transportation: ₦256 billion; Defence: ₦121 billion; Agriculture and Rural Development: ₦110 billion; Water Resources: ₦153 billion and Industry, Trade and Investment: ₦51 billion.
Others are: Education: ₦127 billion; Universal Basic Education Commission: ₦70 billion; Health: ₦132 billion; Zonal Intervention Projects: ₦100 billion; and Niger Delta Development Commission: ₦64 billion.’’
The president said his administration had made efforts to ensure equity in the distribution of projects and programmes in the proposed budget.
“I will be providing the National Assembly a list of some of the most critical projects which we must work collectively to ensure they receive adequate funding.
“Until projects reach completion, they do not deliver the dividends of democracy that Nigerians rightly deserve.’’
On the Recurrent Expenditure, the president stated that ₦5.65trillion had been earmarked for Non-debt Recurrent Cost, ₦3.76trillion for Personnel Cost and ₦501.19billion would be expended on Pensions, Gratuities and Retirees’ benefits.
According to the president, the total overhead costs of MDAs and Government Owned Enterprises are projected to rise to ₦625.50 billion in 2021.
He said this was mainly due to the inclusion of the overheads of an additional 50 Government Owned Enterprises.
“Overhead provisions have also been made for newly created agencies.
“To keep a tab on running costs, MDAs must adhere to extant expenditure controls.’’
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FG to Spend ₦3.12 trillion to Service Nigeria’s Debts in 2021
