Expertsadvised the Federal Government to consider selling refineries and other assets being used to siphon public resources in order to realise resources required to finance part of its budget deficit of N6.3tn.
The advice came following advice by the Senate on to the Federal Government to reduce its spate of borrowing and high deficit financing.
The President, Muhammadu Buhari says that his regime would finance the N6.26tn deficit contained in the 2022 budget with N5tn which his regime proposed to borrow from local and foreign sources.
He states this while presenting the 2022 Appropriation Bill consisting a total aggregate revenue of N16.39tn before a joint session of the National Assembly.
He acknowledged the fact that his government had exceeded the borrowing threshold approved by the Fiscal Responsibility Act but insisted that certain necessities had compelled it borrow more.
Buhari admitted that Nigerians had genuine reasons to be concerned over the rate of borrowings but that his regime was doing everything to ensure its judicious utilisation in the best interest of Nigerians.
Buhari says his regime would source N90.73bn from privatisation proceeds and another N1.16trn drawdowns on loans secured for specific development projects.
They are right to be concerned. However, they believe that the debt level of the Federal Government is still within sustainable limits.
