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National debt reaches N77 trillion – Oniha

National debt reaches N77 trillion – Oniha
Photo by Matt Noble- Ask Nigeria

FG plans to borrow to finance 2022 supplementary budget and the 2023 budget.

Director General of the Debt Management Office (DMO), Ms. Patience Oniha, revealed that the Federal Government of Nigeria would have N77 trillion debt at the end of President Munhammadu Buhari’s tenure which would be inherited by the incoming administration. Recently, there was an approval of N819.5 billion by the National Assembly as supplementary budget for 2022. Another letter also revealed the president informing the lawmakers that the government would take extra N1 trillion from the Central Bank of Nigeria (CBN) through Ways and Means.

According to Oniha, the federal government’s ways of getting the loans through Ways and Means from the central bank would scale up the debt to roughly N77 trillion as the N1 trillion would increase the overall Ways and Means Advances from the CBN to N23 trillion which would be converted to bonds by the government. Despite the data given by the DMO, which says Nigeria’s public debt was at N44.06 trillion as at third quarter of 2022, the federal government plans on more borrowing for financing 2022 supplementary budget and the 2023 budget.

FG would phase out Pioneer Tax Incentives for mature industries.

The Minister of Finance for Budget and National Planning, Zainab Ahmed, asserted that there would be a reduction to about nine percent in the current interest on the borrowed money when the Ways and Means receives legislative support; this would also extend the repayment period to 40 years. The Ways and Means is currently running interest rates which is averaging 18.5 percent. Without the approval, the interest accrues with an additional N1.8 trillion or N2.2 trillion to the Ways and Means.

He also stated the federal government’s loss of N6 trillion to many kinds of tax incentives and waivers in 2021. With this, she affirmed that the federal government would stop the Integrated Corporate Income Tax, also known as Pioneer Tax Incentives, for industries that developed in the 2023 Appropriation Act. The president, on January 3, 2023, signed the 2023 appropriation bill of N21.83 trillion into law, deferring the giving of assent to the Finance Bill 2022 which was still under review, particularly for its conflicts with the fiscal term of the Petroleum Industry Act (PIA).

2023 projections veers as gov’t adjusts to current economic realities.

Ahmed added that the omission of Integrated Corporate Income Tax incentives is for mature industries. There are tax provisions that are dated around 1958 and there are industries that were considered as infant during the period which have grown and are required to exit. The need for mature industries to exit the Pioneer Tax Incentives is so that new infant industries can benefit. These infant industries include industries that are developing in the IT sector that did not exist and should benefit from these opportunities.

As explained by the minister, estimations veered from the National Development Plan of 2021-2025. The minister said the reason for this deviation is because there had to be an adjustment by the government to the current economic realities and the modified medium term outlook. For instance, the real GDP was projected to be 3.75 percent, compared to 4.37 percent projected in the Medium Development Plan by the government. Also, growth was projected to moderate to 3.3 percent in 2024 before it rose up to 3.46 percent in 2025.

Petroleum subsidy remains until middle of 2023.

The projected fiscal outcomes in the 2023 budget relies in the 2023 framework of petroleum subsidy reform ratio. The 2023 budget framework will see petroleum subsidy remain till the middle of 2023, according to the approval of National Assembly and based on the announcement of an 18-month extension early in 2022. To enforce this, provision for PMS subsidy is only N3.36 trillion. The minister also emphasized stricter enforcement of the performance management framework for Government-Owned Enterprises (GOEs) for increment in operating dividend remittances in 2023.


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DMO: Website

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Admin
1
21 days ago

National debt reaches N77 trillion – Oniha – FG plans to borrow to finance 2022 supplementary budget and the 2023 budget. – Express your point of view.

Member
8
21 days ago

In a second letter, the president disclosed that the government would withdraw another N1 trillion from the Central Bank of Nigeria (CBN) via Ways and Means.

Member
8
21 days ago

The president informed the lawmakers in a different letter that the government will use Ways and Means to collect an additional N1 trillion from the Central Bank of Nigeria (CBN). I sincerely hope we can pay off all of these debts.

Member
8
21 days ago

The Integrated Corporate Income Tax, which is sometimes referred to as the Pioneer Tax Incentives, would be terminated by the federal government for industries that developed after the 2023 Appropriations Act was passed.

Member
8
21 days ago

Some tax laws haven’t been updated since 1958, and some industries that were deemed newborns at the time have matured to the point where they need to phase out.

Member
8
21 days ago

It is imperative that older industries give up their eligibility for the Pioneer Tax Incentives so that newer, more nascent industries can reap the benefits.

Member
8
21 days ago

These baby industries include those that are forming in the information technology sector but did not previously exist. Those industries should benefit from the potential presented by these new developments.

Member
8
21 days ago

In addition, the minister urged stronger enforcement of the performance management framework for Government-Owned Enterprises (GOEs) in 2023 to increase operating dividend payments.

Member
8
21 days ago

Our country never cease from borrowing money I hope we can be able to return the money back and find ways we can be generating income not by borrowing and also the new industries should benefit from the new developments the old ones should allow the new ones to enjoy the benefit also

Member
8
21 days ago

The new innovations should be beneficial to the newly established industries. The older ones ought to make way for the younger ones to take use of the benefit as well.

Member
8
21 days ago

It seems the government are taking too much advantage of the the Ways and Means. They needs to lower the rate at which they borrow from the CBN due to the incessant increment in the interest.

Member
8
20 days ago

Nigeria is in financial trouble with the way our government is borrowing money. By the end of Buhari administration will be have 77 trillion loan to service.

Member
9
20 days ago

National debt reaches N77 trillion. This borrowing is over much. No result, what has government done with all this money. This present government is something else

Member
8
20 days ago

The borrowing to fund budget of a country is not right. By the end of this Buhari-led administration will be in debt of 77 trillion naira. These is too much God.

Member
9
20 days ago

Nigeria government planning to borrow in order to finance the supplementary budget and new one with the present hardship in this country I just can’t fanthom how we got everything wrong in this country.

Member
8
20 days ago

In order for emerging businesses to benefit from the Pioneer Tax Incentives, it is essential that established ones relinquish their eligibility.

Member
8
20 days ago

We always borrow money. I hope we can repay the money and discover ways to generate income without borrowing, and the new industries should profit from the new advancements.

Member
8
20 days ago

I hope we can be able to return the money back and find ways we can be generating income not by borrowing and also the new industries should benefit from the new developments the old ones should allow the new ones to enjoy the benefits also.

Member
8
20 days ago

Our national debt has already reached N77 trillion. This amount borrowed is excessive. The government seems to have wasted all this money with no visible results. The current regime is unlike any other

Member
8
20 days ago

Livestock dealers have complained about members’ extortion attempts. To put an end to extortion, the government should take action. Extortion is a significant source of unhappiness, and many individuals are unhappy about it.

Member
8
20 days ago

These emerging sectors in the information technology field include some that were not yet present. These new developments should allow those industries to capitalize on their promise.

Abusi
Member
8
19 days ago

Our national debt is just increasing sporadically and the government is not stopping on borrowing. It is do unfortunate that we still need to service this debts with our own resources.

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