The Federal Government on Wednesday said it had commenced discussions with local banks and other international finance institutions such as the World Bank and China Export-Import Bank on its planned borrowing of N1.8tn this year.
The N1.8tn, which has already been approved in the 2016 budget by the National Assembly, will be needed to bridge the fiscal deficit of N2.2tn in the 2016 period.
The Minister of Budget and National Planning, Senator Udo Udoma, who disclosed this during a meeting with the German Ambassador to Nigeria, Mr. Micheal Zenner, however, did not provide the names of the local banks.
The meeting focused primarily on how to address some of the challenges facing the country as well as discuss how best to grow the economy.
Udoma said the amount to be borrowed would be utilised for infrastructure development in the country, noting that the major focus of the budget was to improve exports.
“On our planned N1.8tn borrowing for infrastructural development, we have started discussions with our local banks and international financial institutions like the World Bank and China Exim Bank, among others. Our budget crux is targeted at import substitution and export promotion,” he said.
Providing more insight into the budget, the minister said that it would be effectively implemented to the benefit of all Nigerians.
The National Assembly had while passing the 2016 Appropriation Bill reduced the budget size from the initial N6.077tn presented to it by President Muhammadu Buhari on December 23, 2015, to N6.060tn, a difference of N17bn.