The Nigeria Government has asked the National Assembly to approve a total of N5.51 trillion external borrowing to fund its revised 2020 budget.
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.
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.
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.