The Nigerian government in 2022 spent a total of N5.65 trillion on debt servicing, representing 106 percent of the total N5.30 trillion revenue generated within the period.
According to the 2022 FGN Budget Implementation report, the
total revenue comprised N3.63 trillion from the Federation Account Allocation
Committee (FAAC), and N1.67 trillion received from independent revenue sources.
The report shows a decline from N11.045 trillion in revenue
in the 2022 approved budget.
On the other hand, the Federal Government’s total
expenditure stood at N14.63 trillion, leading to a deficit of N9.30 trillion.
This is also a decline compared to the N21.82 trillion expenditure in the 2022
approved budget.
Also, a breakdown of the total expenditure showed that
statutory transfer accounted for N810.12 billion, recurrent (non-debt)
accounted for N5.03 trillion, capital expenditure gulped N3.13 trillion, and
N1.24 trillion was spent on capital development fund.
Non-debt recurrent expenditure comprised personnel costs at
N3.49 trillion, overhead costs at N371 billion, other service-wide votes at
N715 billion, and CRF pensions at N387 billion.
The Federal Government deployed almost all of its revenues
generated within the first half of 2023 (99 percent) on debt servicing.
Figures show that between January and June 2023, the total
retained revenue of the Federal Government was N4.06 trillion, while it
utilised N4.02 trillion on debt servicing within the same period.
According to Olumide Ayodele, technical assistant to the
director-general of the Budget Office, the government revenues have remained
below expectations as out of the N5.52 trillion targeted for the first six
months of the year, about N4.067 trillion was generated, indicating N1.46
trillion shortfall.
He noted that of the total N4.067 trillion retained revenue
for the period, N604.1 billion was generated from the oil sector, while non-oil
revenue was N1.14 trillion. Company income tax (CIT) and value added tax (VAT)
were N592.68 billion and N195 billion respectively.
The total revenue collected by Customs Service was N306.18
billion while other revenues amounted to N2.14 trillion.
According to Ayodele, of the N7.76 trillion actual spending
for the first half of the year, N4.02 trillion was spent on debt servicing and
N2.28 trillion was spent on personnel cost, including pension.
He, however, noted that only about N475.98 billion has been
released for capital expenditure as of June 2023.