Managing Director, International Monetary Fund (IMF), Ms. Christine Lagarde, has said that she was not in Nigeria to negotiate a loan and urged the Buhari Government to diversify its revenue to try and get out of an economic crisis fuelled by the fall in oil prices.
According to Reuters, Lagarde held talks with President Muhammadu Buhari at the presidential villa in Abuja, and backed the president’s fight against corruption terming it “very important” and also added that Buhari’s reform push could have a positive impact in Africa.
The IMF had earlier stated that the visit of Lagarde will provide an opportunity to strengthen the Fund’s partnership with the largest economy in sub-Saharan Africa, and was quoted as saying that she looks forward to productive meetings with President Buhari and his colleagues as they address important economic challenges, most importantly the impact of low oil prices.
President Buhari presented a budget of N6.08 trillion for 2016, and benchmarking the budget at $38 per barrel and a projected daily crude oil production of 2.2 million barrels per day.
The Government hopes to make N3.86 trillion in 2016, to be funded by:
- Oil related revenue (projected): N820 billion.
- Non-oil revenues (projected): N1.45 trillion (comprising Company Income Tax (CIT), Value Added Tax (VAT), Customs and Excise duties, and Federation Account levies).
- Independent revenues (projected): N1.51 trillion.
The Minister of Finance, Kemi Adeosun, had earlier said in December that the Federal Government would consider selling Eurobonds to fund the 2016 Budget. She added that the government hopes to have a mix of foreign and local debt, which totalled N1.84 trillion in the 2016 budget presented by President Buhari.
In the 2016 budget;
- Domestic borrowing – N984 billion, and
- Foreign borrowing – N900 billion.