N1.47tn for debt servicing in 2016 FG allocates

The Federal Government has proposed the sum of N1.475tn to service the nation's debt in the 2016 fiscal period.

The proposal is contained in the budget document, which was submitted by President Muhammadu Buhari to a joint session of the National Assembly last Tuesday.

In the fiscal document, a copy of which was obtained from the website of the Budget Office of the Federation, the sum of N1.30tn was planned to be spent on servicing the domestic component of the nation's debt, while the sum of N53.48bn was proposed for foreign debts.

In addition, N113.44bn was proposed to be set aside for a sinking fund that would enable the government to retire maturing loan obligations.

The 2016 budget has a fiscal deficit of N2.22tn, representing 2.16 per cent of Nigeria's Gross Domestic Product.