The Minister of Finance, Mrs Kemi Adeosun, said the Federal Government would only borrow from the lowest cost debt providers to fund the deficit in the 2016 budget.
Minister says FG will only borrow from lowest cost debt providers
She said that the decision was for government to easily service the debts as high cost debts would be counter productive in view of the nation’s economic realities.
Minister of Finance-Kemi Adeosun.
Recommended articles
![Aliko Dangote and Tinubu [NAN]](data:image/svg+xml;charset=utf8,%3Csvg%20xmlns%3D'http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg'%20width%3D'100'%20height%3D'100'%20data-ring-placeholder%3D'1'%3E%3C%2Fsvg%3E "Aliko Dangote and Tinubu [NAN]")
Adeosun said this on Thursday in Abuja while addressing the Senate Committee on Appropriation, chaired by Sen. Danjuma Goje.
"We know that there is a need, because of the budget deficit, to borrow but what I will like to assure you is that borrowing is going to be responsible as possible.
"What we have done is to approach the lowest cost debt providers first; we have secured loan with the China Exim bank at less than two per cent.
ADVERTISEMENT
"We have secured loan facility with World Bank 1.5% concessioner loan with long moratorium period before we have to start repaying and at low interest rate,” she said.
The minister added that the ministry had made some projections around the nation’s revenue beyond the use of the sources of revenue which were oil proceeds, customs and taxes.
She said that to fund the 2016 budget, independently generated revenue would be quite significant in financing it.
"We believe that is one of the opportunities that the lower price has given us that we are now focusing on the non-oil revenue.
"We are aggressively looking at ministries, departments, agencies on board to understand what their true revenue base is and to know how much they are contributing to the wider economy.
ADVERTISEMENT
"We have set in process in the ministry of finance a very rigorous framework of revenue management and to actually monitor revenue.
"We are beginning to roll those out into other agencies of government that collect revenue of any description,” she said.
JOIN OUR PULSE COMMUNITY!
ADVERTISEMENT
Eyewitness? Submit your stories now via social or:
Email: eyewitness@pulse.ng
Recommended articles
Comparing comprehensive vs third-party auto insurance in Nigeria
Kaduna Speaker to El-Rufai's son: Your threat won't stop us from probing your father
Makinde demolishes building where Yoruba Nation agitators operate from
APC chieftain, Lukman faults NWC for backing Ganduje over suspension
EFCC gets permission to drag ex-governor Yahaya Bello to court tomorrow
Court stops EFCC from arresting Yahaya Bello hours after agents surrounded his house
Tinubu hails Dangote's diesel price cut, expects economic boost
'Is this relevant?' - Nigerians react as Gov Adeleke signs bill for new Osun State logo
Why donated blood is not free for patients
Pulse Sports
Lionel Messi's son breaks the internet after scoring five goals for Inter Miami
Naija Stars Abroad: Onyedika, Boniface, and Osimhen shine across Europe
Victor Osimhen and Tobi Amusan make list of Forbes’ 30 under 30 Class of 2024
Alex Iwobi makes Premier League history which Mikel, Yakubu, Kanu could not achieve
Like Michael Jordan - Details of Victor Osimhen’s ‘superhuman’ jump against Monza emerges
ADVERTISEMENT
