FG budgets N1.76tr to settle domestic debts

The federal government has set aside N1.76 trillion in 2018 appropriation bill, equivalent to 87.38 per cent of the debt service amount, for the settlement of domestic obligations.

The bill submitted to the National Assembly last Tuesday by President Muhammadu Buhari titled: “Budget of Consolidation,” has a total of N2.233trillion debt service, representing about 26 per cent of the N8.61trillion total expenditure.

The foreign debt service is expected to gulp N254 billion (or 12.61 per cent of the total debt service sum).

A breakdown obtained by Daily Trust yesterday also shows that N15 billion was allocated for payment of local contractors’ debt and other liabilities.

Analysts said injecting fund to service domestic debts will help rejuvenate the economy and consolidate growth.

Dr Muttaqha Usman of Ahmadu Bello University, Zaria told Daily Trust that servicing more of domestic debt will improve liquidity for banks, thereby releasing more fund for lending.

Meanwhile, the Minister of Budget and National Planning Udoma Udo Udoma will today present the 2018 Appropriation Bill breakdown to the public in Abuja.

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