The Minister of Finance, Mrs. Kemi Adeosun, yesterday, said that reductions in the cost and composition of government financing would drive incremental savings for the country.
Adeosun, who disclosed this during the sectoral debate organised by the House of Representatives, also revealed that the country was going through tough economic times due to decades of dependence on oil at the expense of other commodities.
The minister stated that there was a projected budget deficit of N2. 2 trillion in 2016, which represented 2.2 per cent of GDP, adding that N1.8 trillion borrowing would be structured to achieve cost of effectiveness and acceptable debt sustainability ratios.
According to her, four to five billion dollars is to be raised from multiple external sources, including multilateral agencies and export credit agencies.
“Additional funds to be raised from international capital markets and balance of funds to be raised in domestic market. “Use earnings from revenue-generating projects that are debt financed to service debt,’ she said. The minster further said that Nigeria will target increased capital spending to drive longterm growth.
