The Federal Government has submitted a proposal to borrow the sum of
N5.62 trillion to finance deficits in the 2022 budget, and also slash
capital expenditure in 2022 by N259.315 billion.
The budget for 2022, as proposed by the Federal Government, is
N13.918trillion.
The minister for Finance, Budget and National Planning, Zainab Ahmad,
while presenting the 2022—2024 Medium Term Expenditure.
Framework (MTEF), and Fiscal Strategy Paper(FSP), before the House
Committee on Finance, stated that the reduction became necessary given
economic volatility occasioned by unstable global oil market as well as
effects of the covid-19 pandemic.
On the exchange rate, the naira is being pegged at N410 to $1(US
Dollar), just as that minister told legislators that the projection is likely
to come down in favour of the naira in 2023.
Explaining the deficit, the minister said: “the budget deficit and the
financing items for the expenditure. The budget deficit that is projected
for 2022 is N5.62 trillion, up from N5.60 trillion in 2021.”
