Despite Nigeria’s mounting public debt stock, the Niger Delta Development Commission(NDDC) has proposed taking a N1 trillion loan to fund some capital projects in the region.
The Managing Director of the Commission, Samuel Ogbuku, disclosed this on Tuesday while defending the proposed N1.91 trillion 2024 budget before the House Committee on NDDC.
According to the document presented to the lawmakers, the NDDC plans to take N1 trillion from commercial banks and development banks to fund projects termed “legacy projects.”
“We have strategically made provisions towards diversifying our source of funding as we intend to source an aggregate sum of N1 trillion to fund ongoing legacy projects of the commission in 2024. The sum will be outsourced from development and commercial banks,” Mr Ogbuku said.
Regarding the planned expenditure, Mr Ogbuku said, “Investing in critical infrastructure is a key component of our fiscal strategy under the 2024 Budget Proposals.”
As of March, Nigeria’s public debt stock stood at N121.67 trillion, according to the Debt Management Office (DMO).
The figure rose from N97.34 trillion in December 2023 to N121.67 trillion in March, partly due to exchange rate fluctuations.
Despite this growing debt profile, the Nigerian government continues to accumulate more debt with every budget.
Breakdown of the NDDC’s budget
According to the document submitted, the commission expects N170 billion as arrears from the federal government, N1 trillion from borrowings, N324.8 billion as federal government contributions, N25 billion as ecological funds, and N12 billion as money brought forward.
Additionally, N375 billion is expected from oil companies and N5 billion as internally generated revenue.
On the expenditure side, the commission proposed spending N38.5 billion on personnel costs, N29.2 billion on overhead, N8.7 billion on internal capital projects, N1 trillion on legacy capital projects to be funded through borrowings, and N835 billion on other projects.
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Speaking on the proposal, the Chairperson of the Committee, Erthiatake Ibori-Suenu, called for a more realistic budget by the commission.
“It is our responsibility as a committee to scrutinise your budget. Our goal is to ensure that it is realistic, achievable, and in the best interest of the region,” Mrs Ibori-Suenu said.
