The Federal Government has exhausted over 53 percent of its borrowing limit in the 2015 budget within the last four months due to the dwindling revenue sources, the Minister of Finance, Dr Ngozi Okonjo-Iweala has said
While speaking at the unveiling of the 2015 Appropriation Act passed by the National Assembly last week, the minister said “out of the N882 billon budgetary provision for borrowing, the government has borrowed N473 billion to meet up with recurrent expenditure, including salaries and overheads.”
She said things have been tough since the beginning of the year and they are likely to remain so till the end of the year.”
“We have serious challenges but we also have strengths and if we do the right things we can keep a steady course and emerge out of the current situation,” the minister said.
When asked if President Goodluck Jonathan will sign the budget before leaving office on May 29, the minister said she doesn’t know until she consult the president on that.
The price of crude oil, being the main source of Nigeria’s revenue, dropped by 50 percent since June last year. Since last quarter of 2014, the country has faced a difficult cash crunch and the Federal Government has focused on keeping the economy stable and the government running through a series of measures.