Business Nigeria Spends Half of 2015 Budgeted Borrowings on Overheads

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LequteMan

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Nigeria - According to Minister of Finance, Dr. Ngozi Okonjo Iweala, Nigeria has already used half the borrowing allowance it has budgeted for on over heads and has not released any funds for capital expenditure so far this year.

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Reuters reports that she mentioned this in an email statement confirming how dire the situation is amidst lower oil prices and dwindling government revenues.

“We have serious challenges, ...things have been tough since the beginning of the year and they are likely to remain so till the end of the year. The borrowed money has been spent to cover overhead, including salaries.

“As a result of the 50 percent decline in oil revenues, the country has faced a difficult cash crunch … Out of the 882 billon naira budgetary provision for borrowing, the government has borrowed 473 billion naira to meet up with recurrent expenditure,” the finance ministry said.

#Nigeria #Oil
 
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