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Gov Sule earmarks N7bn for yearly payment of inherited N50bn debt

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Gov Sule earmarks N7bn for yearly payment of inherited N50bn debt
Governor Abdullahi Sule

By David Odama— LAFIA

Governor Abdullahi Sule of Nasarawa State inherited over N50bn debt from the previous administration on assumption of office in 2019. The government is earmarking N7bn as a yearly payment from the 2021 budget for the settlement of the huge inherited debt.

The state Commissioner of Finance, Budget and Planning, Haruna Adamu Ogbole, disclosed these while fielding questions from journalists at the 2021 budget breakdowon in Lafia, the state capital.

Ogbole said that following concerns by government over the debt and the plight of those indebted to, the governor has earmarked N7bn in this year’s budget to commence the liquidation of the outstanding debt of the state.

The commissioner who announced that this year’s budget size of N115,722,814,343.00 was signed into law on December 30, 2020, added that Education was given the highest allocation.

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According to him, the sectorial allocation in percentage terms ranged from Education with 30 percent, Infrastructure, 14.5 percent, Governance, 12.9 percent, Finance, investment, 11.3 percent, Health, 10.4 percent, Agriculture, 5.9 percent, Law and Justice, 3.7 percent, Legislation, 3.0 percent and Environment, 2.8 percent.

The commissioner described this year’s budget as “Budget of economic recuperation” added that the government will ensure strict implementation of the programmes and projects as contained in the budget.

Ogbole said the budget is to be funded from Federation account statutory revenue allocation of N37bn, VAT N15bn, Exchange gain N2.1 billion and special allocation N3bn respectively.

He said: “Internally generated revenue is estimated at N26.43bn, aids and grants N16.28bn and deficit financing borrowing, N14.46 billion” and explained that expenditure estimate for the year under revenue is, recurrent is N53,874,156,817.00 or 46.55 percent. Capital expenditure is N54,830,925,495.00  or 47.38 percent and consolidated revenue fund charges is N7,017,732,031.00 or 6.21 percent respectively.

Vanguard News Nigeria

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