Business
2017 Budget: N2.36bn Deficit Financing Worries Expert
A Financial Expert, Mr Akintunde Sowunmi, has expressed concern over the Federal Government strategy has to finance the N2.36 billion deficit in the 2017 budget.
Sowunmi, who is the Lead Financial Consultant for the Nigerian Association of Small and Medium Enterprises (NASME), made this known in an interview with newsmen in Abuja, Tuesday.
Recall that the 2017 budget has an expenditure outlay of N7.44 trillion.
A breakdown showed that N434.41 billion would be spent on statutory transfers, N1.66 trillion on debt servicing, N177.46 to retire certain maturing bonds, N2.99 trillion on non-debts recurrent, and N2.36 trillion on capital expenditure.
To finance this, the Federal Government said it expected to generate N2.12 trillion from oil revenue and N2.96 trillion from non-oil avenues.
About 11 per cent of the expected revenues, which is N558.8 billion is to come from recovered loots and misappropriated funds.
This brings the total projected revenue to N5.08 trillion, leaving a deficit of N2.36 trillion.
The budget deficit is to be financed mainly through borrowings and N2.32 trillion is expected to be sourced externally, while N1.25 trillion will be sourced locally.
Sowunmi said borrowing N1.25 trillion from local sources, especially the banking sector, would make it difficult for private businesses to also get credit.
In view of this, he advised government to lean more toward foreign borrowings, adding that it was easier for them to get foreign loans than private businesses.
”I am concerned that the bulk of the deficit will be financed by internal sources and that will significantly crowd out the private sector.
”Government is a big borrower and banks stand to benefit more by doing business with them, so it affects the private sector.
”Entrepreneurs and industrialists who are looking for funds from the market are likely to face challenges because a chunk of the funds will be in government hands to finance the budget deficit.
“The government needs to look elsewhere, particularly the capital market, to raise long term funds to finance infrastructure and they should borrow much more from external sources and leave local borrowing to the private sector,’’ he said.
Sowunmi commended the Federal Government’s decision to use N10 billion for the construction and rehabilitation of more than 65 roads and bridges to enhance transportation system in the country.
Cornerstone of Financial Services
A survey of more than 1 000 global finance leaders undertaken by digital payment network Ripple shows that 72% of respondents believe they need to offer a digital asset solution to remain competitive.
According to Ripple, leaders from the banking, fintech, corporate and asset management sector have made it clear that the “digital asset revolution is happening now”.
“Digital assets are quickly becoming a cornerstone of financial services, underpinned by progressive regulation, growing interest from Tier-1 banks, a steady consumer shift from banks to fintech providers, and booming stablecoin adoption,” Ripple says.
The survey was conducted in early 2026 and the findings released in March.
Stablecoin Boon or Bane?
Ripple has experienced significant success in the stablecoin sector since launching its Ripple USD (RLUSD) stablecoin in 2024.
With a market cap of $1.56 billion, it is considered a major regulated player in the market.
No doubt the platform was pleased to learn through its own survey that financial leaders were most bullish about stablecoins.
Roughly three-quarters of respondents believed they could boost cash-flow efficiency and unlock trapped working capital.
Ripple noted that finance leaders were thinking about stablecoins as more than “just a new way to execute payments”; instead, they viewed them as effective tools for treasury management.
In March 2026, Ripple began testing a new trade finance model built around RLUSD in a bid to increase the speed of cross-border payments.
The pilot initiative, developed alongside supply chain finance company Unloq [https://unloq.com], is running on the XRP Ledger inside a testing framework developed by the Monetary Authority of Singapore.
The Asian city-state is one of the platform’s biggest growth markets.
The idea behind the project is to see whether stablecoin-based settlement can streamline trade finance, too often hampered by reliance on intermediaries and slow reconciliation.
The only potential drawback is that if the initiative takes off, the Ripple to USD price could be negatively affected.
Ripple has always championed its native XRP token as a bridge asset, the “middleman” in the process of a financial institution turning dollars in the US into pounds in the UK, for example.
Ripple converts dollars into XRP and then back into pounds.
If RLUSD can do exactly the same thing, questions will be asked about XRP’s relevance.
That is a bridge Ripple will have to cross if it gets to that point.
Tokenisation Partners
Another interesting finding from Ripple’s survey is that most banks and asset managers are seeking tokenisation partners to help execute their strategies.
Some 89% of respondents said digital asset storage and custody were top priority. “Token servicing/lifecycle management also ranks highly for banks at 82%, while asset managers place greater emphasis on primary distribution at 80%,” Ripple found.
The survey also revealed that just more than half of fintechs and financial institutions want an infrastructure provider that can offer a “one-stop-shop solution”. This rose to 71% among corporate financial leaders.
Ripple attributes this to institutions and firms wanting uncomplicated, cohesive systems.
Infrastructure Rules
In its final analysis, Ripple says companies across the board are looking for partners and solutions that are “secure, compliant, battle-tested and that enable growth and execution”.
“The message is clear: infrastructure decisions made today will shape competitive positioning tomorrow.”
No surprise that this is precisely where Ripple is placing much of its focus.