The 2022 budget was tabled by President Muhammadu Buhari ahead of the joint session of the National Assembly with a deficit of 6,200 billion naira to be financed by debt.
President Buhari, while preparing the budget, defended his government’s borrowing. He said Nigeria would still have been in a recession had it not been for borrowing by his government.
“As you know, we have witnessed two economic recessions during the period of this administration. In both cases, we had to spend our way out of recession, which necessitated recourse to the increase in public debt. Our recovery from each of the two recessions is unlikely to have accelerated so quickly without the sustained government spending financed by debt, ”he said.
According to the president, Nigeria does not have a debt problem, but rather an income problem.
To finance the deficit, Nigeria will borrow “5.01 trillion naira, 90.73 billion naira from the proceeds of privatization and 1.16 trillion naira from withdrawals on loans guaranteed for specific development projects”.
The total budget presented by Buhari is 16.39 trillion naira.
The breakdown is as follows; statutory transfers 768.28 billion naira, recurring costs 6.83 billion naira, overhead costs 792.39 billion naira.
Capital expenditure of 5.35 trillion naira, debt service of 3.61 trillion naira, sinking fund of 292.71 billion.
In his remarks, Senate Speaker Ahmad Lawan said the National Assembly will pass the budget before the end of the year.