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Fayose faults FG’s plan to fund 2016 Budget with N1.84tr loan


Ayodele Fayose

Ayodele Fayose

Ekiti State Governor, Ayo Fayose, has raised the alarm over President Muhammadu Buhari’s scheduled trip to China to borrow $2 billion as part of the N1.84 trillion programmed to be borrowed to finance the 2016 budget, describing the move as an attempt to mortgage the future of Nigeria and its people.

The Governor, who said this year’s budget was not a reflection of the present economic reality in the country, noted that “by the time they borrow N1.84 trillion to fund their N6.06 billion budget, I wonder how Nigeria will survive in 2017 when the Federal Government will be servicing debt with about 50 per cent of its budget.”

Fayose said it has been widely reported that Nigeria wants to raise about $5 billion abroad to cover part of its 2016 budget deficit.

In a release issued yesterday by his Special Assistant on Public Communications and New Media, Lere Olayinka, Fayose said: “In elementary economics, you don’t propose to spend more when your income reduces and I still can’t understand this Buharinomics in which Nigeria is going to spend N6.06 billion with crude oil bench mark of $38 per barrel when the country’s budget was N4.5 trillion in 2015 when crude oil bench mark was $53 per barrel.

He said since the President claimed to have recovered and still recovering trillions of Naira looted from the treasury and over N3 trillion saved from the Treasury Single Account (TSA), the 2016 budget should be funded with the recovered fund.

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