Economic and financial experts have expressed fear about the Federal Government’s ability to service the nation’s debts and execute capital projects in the 2020 budget.
The Federal Government had on Wednesday adjusted the 2020 budget downward from the original N10.59tn to N10.52tn, with a deficit of over N5.36tn to be financed by domestic and foreign borrowings.
Expressing concern over government’s debt stock, he said debt servicing obligations were gobbling up almost 50 per cent of government revenue. “In 2005, it was actually $26bn and we were crying that it was too much. It has more than doubled. So, it is a big problem for us going forward.” An energy economist, Prof. Adeola Adenikinju, said the $25 oil price benchmark was fair, adding that priority should be given to capital projects that could generate employment “because we need to protect the livelihoods of people”.
The Managing Director and Chief Executive Officer, Mr Bismarck Rewane, noted that the 2020 budget had been reviewed twice, saying, “We have never had supplementary budget in this country for the past 20 years, and we are doing twice in three months.”“If there are any difficulty, the debt may be restructured. There are many people who are calling for debt service relief so that interest will not be paid until after the coronavirus crisis,” he added.
Nigeria Latest News, Nigeria Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Mambila Power, East-West road won't benefit from $311m Abacha loot - Presidency - Latest Nigeria News, Nigerian Newspapers, PoliticsThe Presidency has clarified that two of the five priority projects of the administration; Mambilla Power and East-West Road projects, not benefit
Read more »
Kwara gets 12 new Perm SecsThe appointments are with immediate effect while the Office of the Head of Service and Civil Service Commission are to ensure seamless transition.
Read more »
Chinese medics on 'company visa', not FG responsibility – Daily TrustFederal government says it has no responsibility to tell the whereabouts of the Chinese medics who came into Nigeria at the outset of the coronavirus pandemic in the country as they were not invited by Nigeria but came in on a company visa.
Read more »
Kanu threatens to sue FG over arrest of IPOB members - Latest Nigeria News, Nigerian Newspapers, PoliticsBy Chris Njoku, Owerri The leader of Indigenous People of Biafra (IPOB), Nnamdi Kanu, on Thursday said he would sue the Federal Government and Inspector-General of Police for illegal arrest of the IPOB members in Delta State. Police in the state arrested about 10 members of the organisation on Wednesday allegedly in possession of […]
Read more »
Rivers lawmaker faults FG’s school feeding programme, says ‘it’s a scam’A member representing Degema\/Bonny Federal Constituency, Hon. Farah Dagogo has knocked the Federal Government's school feeding programme, saying it is one of those scams that has reduced the country to where it is. Reacting to the exercise that was due to commence on Thursday, the lawmaker wondered how such a programme could be successful when
Read more »