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Buhari moves to sell off govt properties to fund 2021 budget

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Findings carried out by online media outlet, Premium Times signifies shows that Nigeria’s authorities is ready to sell off some properties over 2021 budget.

Aside from its plan to get involved in domestic and foreign borrowings to finance the 2021 budget, the federal government has ascertained that it’ll additionally sell some government-owned properties for a similar goal.

The federal government also stated it’ll sell some non-oil assets to serve as a further stream of finance for the year’s budget.

That is included in a Tuesday presentation given in Abuja by Zainab Ahmed, the finance minister, to stakeholders in regards to the signed 2021 budget. Copy of the presentation was obtained and sighted by Premium Times.

Tagged, ‘Public Presentation of 2021 FGN Approved Budget – Breakdown and Highlights’ and was dated January 12.

We understand the President, Muhammadu Buhari had on December 31, 2020, approved the N13.58 trillion budget for the 2021 fiscal year – about N505 billion greater than the funds submitted in October 2020.

In the authorised budget, about N496.5 billion was endorsed for statutory transfers and N3.3 trillion was accredited for debt services.

The capital expenditure was led at N4.1 trillion and fiscal deficit at N5.2 trillion (5,196,007,992,292) with recurrent expenditure assigned at N5.6 trillion.

Already, many have chid the federal authorities’ constant intention to borrow to fund budgets yearly. For these 12 months, the government is to obtain N5.6 trillion from domestic and foreign resources. The amount being the entire deficit for the 2021 budget.

This represents 3.93 percent of the GDP, Premium Times reports.

The paper further disclosed how the deficit might be financed, in keeping with the ministry of finance.

Both Buhari and Ms. Zainab had stated the country will borrow funds from the World and Islamic Development Banks, including Brazil to fund the budget.

In addition to borrowings
In accordance with the document, one other means by which the government aims at funding the budget is by selling and concessioning government-owned properties and non-oil assets.

“Sales of government property” and “non-oil asset sales” were listed under the “further financing” section of the document. This section shows an overview of how the deficit will be financed.

Though the report didn’t state the firms which have been put up for sale, neither did it state the anticipated revenue from the sales, this validates earlier presumptions of the federal government’s plan to unload some properties for sale.

The Senate committee on privatization, in November 2020, mentioned it was not informed of the Buhari administration’s agenda to sell or concession some national properties via the Bureau of Public Enterprise (BPE). This was in the course of the agency’s 2021 budget defence session.

Papers submitted to the committee confirmed plans by the federal authorities to sell the Integrated Power Plants in Geregu, Omotosho, and Calabar at N434 billion in 2021.

Additionally within the doc had been plans to concession the National Arts Theatre, Tafawa Balewa Square, and all of the River Basin Development Authorities at N836 million while the National Stadium in Lagos, the Moshood Abiola Stadium, Abuja, and two others had been pegged for concessioning at N100 million.

Theodore Orji, the chairman of the committee, earlier stated the panel does not know the intended transactions. He additionally lamented that the Director-General of BPE, Alex Okoh, “refused to carry members of the panel along”. Read All

 

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