Despite assurances by the Federal
Government to reduce domestic borrowing, there are indications that it
will raise N633.85bn from the bond market in 2013.
The Medium Term Expenditure
Framework 2012 – 2014 obtained by one of our correspondents in Abuja on
Monday showed that out of a proposed expenditure of N4.83tn in 2013,
the Federal Government would resort to the domestic debt market to
borrow N633.85bn.
Coordinating Minister of
the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala, had at a
forum raised the alarm over the nation’s domestic debt, which stood at
$38.37bn (or N5.97tn) as at March 31.
She also disclosed that the Federal Government would establish a sinking fund aimed at reducing the volume of the domestic debt.
In an apparent
contradiction of this intention, government, in the MTEF prepared by the
Budget Office of the Federation, said it would run a deficit of
N833.85bn in 2013 and 76.01 per cent of this would be funded through
borrowing from the domestic debt market.
Other funds for the deficit
are N50bn to be obtained from signature bonus and N150bn from the
Stabilisation Fund/Excess Crude Account.
Government should reduce of borrowing so avoid embarrassment. We have resources that can take us to any level; we are just blessed but we don't want to use our own, rather we prefer going outside to import or bring it in. Pls i urge Nigerian Government to please and please help our blind eyes to see the blissful shinning light.
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