Security: Buhari Seeks Approval Of Senate To Borrow N1.061 Trillion

*Presents N465.7 2015 Supplementary Appropriation To Senate  President Muhammadu Buhari on Wednesday hinted the Senate of a resolve by his government to borrow the sum of N1.061 trillion to finance plans to address the country’s security challenges.
The President in the process laid a Supplementary Budget of N465, 636, 926, 857 billion before the Senate, while he sought the lawmakers support to raise the government’s borrowing from N882.1 billion built into the 2015 budget to N2.103 trillion.
The sum of N2.103 trillion, according to the President is required to finance the deficit in the 2015 budget prepared by the past government.
The President said the expected deficit arising from the above is projected at N2.103 trillion representing 2.19 per cent of GDP and which will be financed by additional borrowing of N1.601 trillion through the debt management office.

The Senate President Bukola Saraki during Wednesday’s plenary, read the President’s communication to the Senate on the 2015 Supplementary Appropriation for which he requested a speedy passage.
The President’s request has revealed the extent of distress in the Nigerian economy, as he blamed the shortcoming on the dwindling oil revenue at the international market.
According to Buhari, the government required the new funding initiative to address security challenges and other important obligations with the sum of 465.64 billion.
Buhari in the letter told the Senate that the 2015 budget was initially predicated on oil production of 2.2782million barrels per day, and on a benchmark oil price of 53 dollars per barrel based on an exchange rate of 190 per dollar.

According to the President, the government had targeted revenue of N3.452 trillion made off share of oil and mineral revenue, while the sum of N1.645 trillion was expected from non-oil revenue
FGN aggregate expenditure was estimated at 4.485 trillion, comprising statutory transfers of N354.34 billion, debt service N953.6 billion, recurrent-non debt personnel cost N1.828 trillion, recurrent non debt overhead N791.2 billion and Capital expenditure N536. 6 bn.
According to the President, the implementation of the 2015 budget has unexpectedly ran into a hitch owing to revenue shortfalls as well as the continuous decline in oil price.
He said there has also been oil production shortfall and non-oil revenue.
Buhari said his government required the increase in the 2015 budget to the tune of N465.64 billion and the planned borrowing on the need to sustain the current progress in the addressing the security challenges and other important obligations of government, emergency.
Meanwhile, the Senate has promised to grant the President’s request an expeditious passage after going through the 2015 Supplementary Appropriation bill.
The Senate Committees on Appropriation and Finance just inaugurated by the Senate President vowed to resume work immediately to consider the request by the President.

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