Nigeria set to reduce borrowing funds for 2016 budget

The Federal Government is planning to reduce the amount of borrowing needed to fund the 2016 budget from funds mopped up from government agencies through the implementation of the Treasury Single Account.

The 2016 budget, which has been submitted by President Muhammadu Bubari to the National Assembly, has a deficit of N2.2tn.

The deficit, according to the fiscal document, is to be financed through the borrowing of N1.84tn made up of domestic borrowing of N984bn and foreign borrowing of N900bn.

There are anxiety in government circles that the deficit may rise to about N3tn as a result of the global drop in oil price, which is currently selling below the $38 per barrel budget benchmark price.

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