Niger State Government says it will borrow N100.4 billion to finance its 2022 budget which was estimated at N198.2 billion for the fiscal year.
The State Commissioner for Finance, Budget and Planning, Zakari Abubakar, made the disclosure to newsmen on Monday, a few days after Governor Abubakar Sani-Bello had presented the appropriation bill to the State House of Assembly.
The commissioner explained that the state government is poised to borrow N100.408,817,345.23 million consisting of external, internal borrowings and grants from various sources towards the financing of the estimates.
According to him, the Federation Allocation Account Committee, FAAC, will contribute N54.2 billion, Value Added Tax will present N20.7 billion, Internally Generated Revenue, IGR, N17 billion while other sources will contribute about N5 billion.
On the current debt profile of the state, the commissioner noted that the state is indebted to local and foreign creditors to the tune of N87 billion, adding that some of the debts were inherited by the present administration.
The commissioner further disclosed that N2,253,507,068.89kobo is to be spent in the proposed budget for the payment of interest representing 3.38 percent of the total budget estimates.