The Nigeria Government has asked the National Assembly to approve a total of N5.51 trillion external borrowing to fund its revised 2020 budget.
With the new Nigeria Government request, Nigeria’s total debt will be around N41.6 trillion when approved.
Earlier this year, a similar request was approved by the National Assembly amounting to $22.798 billion (N8.7 trillion) which added to the 2019-year end figure of N27.4 trillion.
The new request also indicated that the Nigeria government has reversed its earlier move to drastically slash the already passed 2020 budget by over N1.5 trillion to N9trillion from N10.594trillion.
The reduction is now N85billion with a new proposal of N10.51 trillion.
By the new request, debt servicing has now gone up to about N3.0 trillion from N2.4trillion earlier approved in the 2020 budget.
The new Appropriation Bill sent to the Senate, yesterday, by President Muhammadu Buhari, which scaled Second Reading immediately, also indicated a revision of key macroeconomic parameters, while projected oil revenues for 2020 was significantly reduced.
In separate letters to the two chambers of the National Assembly, the revised budget was predicated on oil price benchmark of $25 dollar per barrel as against $57per barrel in the earlier approved budget and the first revised benchmark of $30.
Other assumptions of the revised N10 509trillion budget are 1.98million barrels oil production per day as against 2.3million barrel oil production per day earlier approved, exchange rate of N360 to a US dollar as against N305 to the US dollar earlier passed and approved.
Other critical components of the newly proposed N10.509trillion budget are N398.505 billion as statutory transfers , N4.928.525trillion as recurrent expenditure and N2.230.912trillion as capital expenditure.
Nigeria Government explained further that aggregate revenue for funding the now revised 2020 budget is N5.09trillion which is 35% or N2.78trillion less than the one passed by the National Assembly and signed into law by him in December 2019.
Debt trend since 2015 As at the first quarter of the Buhari administration, which was the end of June 2015, the national total public debt stock stood at N12. 118 trillion, about $63. 806billion.
That amount consisted of N10.083 trillion domestic debt and an external debt of $10. 316 billion. The external debt was what both the federal government and the sub-nationals owed foreign creditors.
While the Federal Government’s domestic debt stood at N8.396 trillion, states and the Federal capital Territory owed N1.690 trillion. B
y the third quarter of that year, domestic debt moved marginally to N10. 267 trillion, with the Federal Government accounting for NN8. 612 trillion and sub-nationals responsible for the balance of N1.655 trillion. The external debt inched to $10. 617 billion, bringing to total debt stock to N12. 358 trillion or $64. 197 billion. However, by the first quarter of 2016, the total debt stock jumped to N13. 830 trillion or $71. 656 billion.
It consisted of federal government’s N9. 970 trillion domestic debt and those of states with N1. 656 trillion, as well as an external debt of $11. 194 billion.
At the end of that year, the debt stock took another leap to N17. 360 trillion, with the Federal Government, accounting for N11.058 trillion and states N2.822 trillion.
The external debt also moved to $11.406 billion. 2017 closed with a debt stock of N21.725 trillion. It consisted of the federal government’s N12. 589 trillion and states’ N3.348 trillion. Similarly, at the end of that year, external debt had risen to $18. 913 billion.
The rise has persisted with 2018 opening quarter recoding N22.707 trillion debt stock and closing in the fourth quarter with N24. 387 trillion or $79. 436 billion.
Last year (2019) witnessed another sharp rise from the first quarter figure of N24. 947 trillion to its last quarter with a stock of N27. 401 trillion of $81. 274 billion.
New budget details Part of the N85billion reduced from the earlier approved 2020 budget is N11billion deducted from the N110billion capital votes allocated to the Judiciary in the previous budget.