2016 Budget: FG To Borrow $1b From AFDB To fund Budget


The Federal Government is in an advanced stage in the process of acquiring $1 billion loan from the African Development Bank (AFDB) for the purpose of funding the 2016 budget. According to report, the AFDB loan will be used to cover up the 35% shortfall in the 2016 budget.

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The 2016 budget has generated so much controversy, such that experts have adjudged it as the ‘most controversial in history’. While presenting the budget to a joint seating of the National Assembly, President Buhari had christened it the “budget of change”, a change, the entire agenda of his administration vowed to deliver.

The controversy has seen a lot of stories such is missing budget, the stalemate before the eventual signing and more recently the “budget padding” which has thrown the House of Representatives into crises.

2016 budget

There has also been debates and confusion as to whether the budget will be fully implemented or not. The Minister of Budget and National Planning, Senator Udo Udoma did rule out the possibility of the Federal Government fully implementing the 2016 Appropriation Act which has been signed by President Muhammadu Buhari.

However, an aide to the Minister dismissed the reports saying that the budget will have a 100 per cent implementation’

It is interesting to note that President Muhammadu Buhari said the Federal Government has so far mopped up over N3 trillion as revenue accruals since the policy of Treasury Single Account commenced.

The anti-corruption war has also been reported to have recovered billions of naira from corrupt public officials, hence people wonder why there is need for the AFDB loan.

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With all these funds recovered and the TSA loaded, it is obvious that the end of controversies over the 2016 historic budget is not yet in sight, especially with this chase for more funds in the form of an AFDB loan by the Federal Government.