Budget: Finance, power projects get lion’s shares of N1.16tn loans – Punch Newspapers

Published 11 October 2021

The Ministry of Finance, Budget and National Planning will get the lion’s share, in terms of projects costs, of the N1.16tn multilateral and bilateral loans that the Federal Government is planning to get to part fund the 2022 Budget.

The Minister of Finance, Budget and National Planning, Zaynab Ahmed, had on Friday said from the N16.39tn budget that the President, Major General Muhammadu Buhari (retd.), presented to the National Assembly on Thursday, N10.13tn was projected to be generated as revenue and N6.26tn which is 3.39 per cent of Gross Domestic Product as deficit would be financed majorly by borrowing.

“To fund the deficit, N2.51tn would come from domestic sources, another N2.51tn from foreign borrowing, N1.16tn from multi- and bi-lateral loan drawdowns and N90.7bn from privatisation proceeds,” the minister had said.

According to a document titled ‘2022 budget proposal: Schedule for multilateral/bilateral project-tied loans’ the ministry will get N269.86bn worth of projects from the N1.16tn loans, making it the biggest beneficiary.

A total of 42 projects are tied to the loans out of which the ministry will execute six.

The six projects are the Fiscal Governance and Institutions Project (N15.57bn); States Fiscal Transparency, Accountability and Sustainability Programme for Results (N4.1bn); Development Bank of Nigeria (N20.51bn); COVID-19 Action Recovery and Economic Stimulus Programme (NCares) (N143.55bn); Power Sector Recovery Project (N82.03bn); and the Family Homes Funds Housing Project (N4.1bn).

The Ministry of Power is second on the list with N220.54bn worth of projects.

One of projects is that which seeks to interconnect Nigeria-Niger-Benin-Togo-Burkina Faso with power.

The project which will gulp N3.6bn is tagged 330KV DC North Core interconnection of Nigeria/Niger-Benin/Togo-Burkina Faso.

Others are the Zungeru hydro-electric power project (N43.07bn); construction of 132/33KV substation, solar mini grid electrification and solar street lightning project in Kaduna State (N4.1bn); construction of

2X26 MW gas-based power plant and associated gas supply facility in Calabar, Cross River State (N2.46bn) and the Nigeria Electricity Transmission and Access Project (N68.58bn).

Others are the Transmission Company of Nigeria’s Abuja power feeding project (N27.48bn); and the National Rural Electrification Agency’s Nigeria Electrification Projects of N38.35bn and N32.81bn.

The Ministry of Communication and Digital Economy has projects worth N126.9bn; Ministry of Agriculture and Rural Development has N118.9bn; while Ministry of Health has N77.9bn.

Others are Ministry of Transportation, N69.3bn; Ministry of Education, N62.5bn; Ministry of Works and Housing, N61.52bn; Ministry of Water Resources, N42.24bn; Ministry of Humanitarian Affairs, Disaster Management and Social Development, N30.76bn; Ministry of Women Affairs, N25.59bn; and the Ministry of Environment, N16.4bn.

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