OrderPaperToday – Minister of Finance, Mrs. Kemi Adeosun has said the Federal Government would borrow from the World Bank and the China Exim Bank to fund the deficit in the 2016 budget because of their low interest rates and favourable repayment terms.
Adeosun disclosed this on Thursday in Abuja while briefing the Senate Committee on Appropriation chaired by Sen. Danjuma Goje.
She said government approached those institutions for fund as high cost debts will be counter productive in view of the nation’s economic realities.
“So therefore what we have done is to approach the lowest cost debt providers first; we have secured debt with the China Exim bank at less than 2 per cent,” the minister said, adding: “We have secured debt with World Bank 1.5% concessionaire loan with long moratorium period before we have to start repaying and low interest rate.”
Adeosun noted that the ministry had made some projections around the nation’s revenue beyond the use of the sources of revenue which are oil proceeds, customs and taxes, adding that to fund the 2016 budget, independently generated revenue would be quite significant in financing.
She said: “We believe that is one of the opportunities that the lower price has given us that we are now focusing on the non-oil revenue. We are very aggressively looking at ministries, department, agencies on board to understand what their true revenue is to extend that which state should be contributing to the wider economy.
“We have set in process in the ministry of finance a very rigorous framework of revenue management and to actually monitor revenue and see online real time. We are beginning to roll those out into other agencies of government that collect revenue of any description.”