The federal government under President Muhammadu Buhari has spent 41 per cent of the revenue generated in 2022 to service its N44.06 trillion debt.
This was disclosed by the Minister of Finance, Budget and National Planning, Zainab Ahmed at the weekly ministerial briefing in Abuja, monitored by LEADERSHIP.
The minister also said she is shocked by the recent downgrade of Nigeria’s credit rating by Moody’s Investors Service, a US-based rating agency.
The budget for 2022 as amended projected N18.1 trillion spending out of which N8.17 trillion deficit will be sourced through domestic borrowing.
But even more worrisome for the government is that 41 per cent of the revenue generated was spent to service Nigeria’s debt, the Minister revealed.
Personnel cost including pensions gulped 31 per cent while only 15 per cent was released for capital investments.
Ahmed said, “2022 fiscal outcomes impacted by oil revenue performance and you will also see that non-oil revenues have been on the rise. As at November 2022, aggregate Federal Government revenue was N6.5trn and this is 66.7 per cent of the target that we have set for 2022.
“The federal government’s share of oil revenues to fund the budget was N586.7bn representing 29.2 per cent performance while none-oil revenues totally N2.09trn representing an out-turn of 99.1 per cent compared to the budget projections.
“Non-oil revenues continue to out per from oil revenues. The Company Income Tax and the Value Added Tax as the top performers recording 129.8 per cent and 93.3 per cent of their respective targets.
“On the expenditure side, total expenditure to fund the 2022 budget as amended and also remember we had a supplementary budget was estimated at N18.1trn, however, as at November 2022, spending fell short of the target by 22.6 per cent.
“The implementation of the 2022 budget has been extended for the capital to 31st of March 2023. Of the expenditure out-turn so far for 2022, 41 per cent of the spending has been on debt service, 31 per cent was utilized for personnel cost including pensions and 15 per cent was released for capital investments.”
She said the combined fiscal deficit for 2022 was estimated at N8.17trn with 54 per cent of the deficit financing to be obtained from domestic sources.
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