Nigeria will borrow as much as N900 billion abroad to fund its budget deficit which is expected to double to N2.2 trillion in 2016. It also plans to borrow N984 billion locally. This is to enable the government to revive Nigeria’s weakening economy by tripling capital expenditure.
“The 2016 budget, as outlined, is designed to ensure that we revive our economy, deliver inclusive growth to Nigerians and create a significant number of jobs,” said President Muhammadu Buhari said on Tuesday when he appeared before the parliament to present the budget.
The total budget volume would be N6.08 trillion. Of this total, N1.8 trillion would be spent on capital expenditure to make the Nigerian economy more “competitive”, Buhari said.
Nigeria’s 2016 budget is an increase of about 20 percent from this year. The N2.2 trillion deficit is 2.16 percent of gross domestic product, increasing from about 0.79 this year.