The Federal Government may borrow an additional N7.24 trillion in 2024 to fund its economic intervention plan.
This was revealed during a presentation by Wale Edun, the minister of finance and coordinating minister of the economy, on an Accelerated Stabilisation and Advancement Plan (ASAP) designed to address key challenges affecting the reform initiatives and stimulate development in various sectors of the economy.
The government already intends to borrow N9.18 trillion to fund its deficit in the year. The intervention financing will cost an additional N7.24 trillion, pushing the total debt for 2024 to N16.42 trillion.
This borrowing is anticipated due to an expected lag in revenue, and according to the government’s admission, the incremental spending that would accrue because of the intervention funding would hurt leverage metrics if it is entirely funded by additional borrowing only.
Details later…