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FEDERAL GOVT PLAN SELL PROPERTIES TO FUND 2021 BUDGET

Federal Govt Plans Sell Properties To Fund 2021 Budget

The finance minister confirmed the decision of the federal govt to sell some government properties in a document to submitted to lawmakers.

Apart from its plan to engage in domestic and foreign borrowings to fund the 2021 budget, the federal govt has confirmed that it will also sell some government-owned properties for the same purpose.

The federal govt also said some non-oil assets will be sold to serve as additional source of finance for the year’s budget.

This is contained in a Tuesday presentation made in Abuja by the finance minister, Zainab Ahmend, to stakeholders about the signed 2021 budget. Premium Times obtained a copy of the presentation.

The presentation, titled, Public Presentation of 2021 FGN Approved Budget- Breakdown and Highlights’ was dated January 12.

President Muhammadu Buhari had on December 31, 2020, signed the N13.58 trillion budget for the 2021 fiscal year-about N505 billion higher than the budget proposed in October, 2020.

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In the approved budget, about N496.5 billion was approved for statutory transfers and N3.3 trillion was approved for debt services.

The recurrent expenditure was put at N5.6 trillion with capital expenditure at N4.1 trillion and fiscal deficit at N5.2 trillion (5,196,007,992,292).

Already, many have condemned the federal government’s consistent resolve to borrow to fund budgets annually.

For this year, the government is to borrow N5.6 trillion from domestic and foreign resources. The amount being the total deficit for the 2021 budget.

This represents 3.93 percent of the GDP.

This paper had reported how the deficit will be financed, according to the ministry of finance.

Both the president and Minister Zainab had said Nigeria will borrow money from the World Bank, the Islamic Development Bank and countries like Brazil to fund the budget.

Besides borrowings, according to the document, another means by which the federal govt intends to fund the budgets is by selling and concessioning government-owned properties and non-oil assets.

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Sales of government property “and” non-oil asset sales “were listed under the additional financing” section of the document.

This section shows an overview of how the deficit will be financed.

Although the document did not state the companies that have been put up for sale, neither did it state the expected revenue from the sales, this confirms earlier speculations of the government’s plan to sell off some properties.  

In November 2020, the Senate committee on privatization said it was not aware of the government’s plan to sell or concession some national properties through the Bureau of Public Enterprise (BPE).

This was during the agency’s 2021 budget defense session.

Documents presented to the committee showed plans by the federal government to sell the integrated Power Plans in Geregu, Omotosho, and Calabar at N434 billion in 2021.

Urhobo Daily

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