Government plans 5% budget slash amid public debt fears   

19 October 2018 : Nigeria’s debt position has become a rising source of concern for stakeholders in more recent time given the rapid rise in debt levels – total debt rose from N12.6 trillion in 2015 to N22.4 trillion as of June 30 this year – as well as worrying debt servicing figures – c.62% of revenue in 2017. In light of this, the Minister of Budget and National Planning Udoma Udo Udoma, has announced that Nigeria’s 2019 Budget is expected to be 5.15% lower than this year, coming in at N8.65 trillion (2018: N9.12 trillion). 

Whilst the stronger than expected rise in oil prices have supported government revenue so far this year – the at N2.48 trillion in the first 9 months of the year (FY’17: N2.6 trillion) – the country still faces medium-term fiscal challenges, with respect to sluggish growth in non-oil revenue generation and bloated recurrent expenditure that could rise even further if a minimum wage increase is implemented. 

Reporting for EasyKobo on Friday ,19 October 2018 in Lagos, Nigeria

Source: Vetiva Capital Management Limited

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