Buhari Plans To Execute Nigeria’s 2022 Budget With N5trillion Loans

President Muhammadu Buhari presented the National Assembly’s joint session with the 2022 budget, dubbed “Budget of Economic Growth and Sustainability.”

In his speech, the President stated that if the budget is approved by federal MPs, it will be financed with a loan of N5.01 trillion.

Buhari praised the National Assembly members for quickly passing his previous budgets, saying that “the 2022 Budget would be the last full-year budget to be implemented by this administration.”

The president said, “We designed it to build on the achievements of previous budgets and to deliver on our goals and aspirations as will be reflected in our soon-to-be-launched National Development Plan of 2021 to 2025.”

Amid agitations over the country’s current debt profile, Buhari added, “We plan to finance the deficit mainly by new borrowings totalling N5.01trillion, N90.73billion from privatisation Proceeds and 1.16 trillion Naira drawdowns on loans secured for specific development projects.”

Defending his borrowing plans, the President said the loans taken by his government were expended on capital projects mainly railway projects and other infrastructures.

“I am pleased to inform you that we expect to fund MDAs’ capital budget fully by the end of the fiscal year 2021.

“Capital releases thus far have been prioritised in favour of critical ongoing infrastructural projects in the power, roads, rail, agriculture, health and education sectors.

“We have made progress on the railway projects connecting different parts of the country. I am glad to report that the Lagos–Ibadan Line is now completed and operational. The Abuja–Kaduna Line is running efficiently. The Itakpe-Ajaokuta rail Line was finally completed and commissioned over thirty (30) years after its initiation.

“Arrangements are underway to complete the Ibadan-Kano Line. Also, work will soon commence on the Port Harcourt–Maiduguri Line and Calabar-Lagos Coastal Line, which will connect the Southern and Eastern States to themselves and to the North.

“Progress is also being made on several power generation, transmission, and distribution projects, as well as off-grid solutions, all aimed towards achieving the national goal of optimising power supply by 2025,” Buhari added.