2020 Budget: FG Earmarks N2.45trn For Debt Servicing

President Muhammadu Buhari on Tuesday revealed that the federal government had earmarked N2.45 trillion for  the servicing of debt in the 2020 budget.

Buhari revealed this during his presentation of the 2020 budget proposal before a joint session of the National Assembly.

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According to the president, local debts would take about N296 billion out of the N2.45 trillion.

“Accordingly, we provided the sum of N2.45 trillion for debt service. Of this amount, 71 percent is to service domestic debt which accounts for about 68 percent of the total debt.

“The sum of N296 billion is provided for the Sinking Fund to retire maturing bonds issued to local contractors.

“According to the President, overhead cost will be N426.6bn,” he said.

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Buhari reiterated the country’s commitment to meeting its debt service obligations while also expressing optimism that his administration’s aggressive revenue drive will maintain debt-revenue ratio at acceptable and manageable levels.

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