- The federal government spent more than N1.8 trillion from January to May this year to pay off debtors, leaving a meager amount for infrastructure
- The government debt-to-income ratio was estimated at 97.8% in the reporting period, higher than the expected 46.9% for the full year
- The N1.8 trillion came from the N1.84 trillion generated in the first five months of this year, which is a long way from the expected N6.6 trillion revenue.
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For every N100 conducted by President Muhammadu Buhari’s government in the first five months of 2021, N97 was used to pay off debtors owned by the federal government.
Between January and May of this year, the Nigerian government posted a turnover of N1.84 trillion, but it used N1.8 trillion to pay off its debt.
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This means that for most of the first half of 2021, the federal government’s debt-to-income ratio was 97.8% and used 72.2% of projected debt service for the year.
Note that FG had projected that debt service will swallow N3.1 trillion in twelve months of 2021, an amount that will come from N6.6 trillion revenue.
This brought the government’s projected debt service-to-income ratio for 2021 to 46.9%, which is lower than the estimated debt service for 2022.
It was gathered that President Buhari’s government will spend N3.6 trillion next year to pay off debt. For 2022, FG forecast revenue of N8.35 trillion.
President Buhari borrows N10 billion daily
In similar news, Legit.ng had previously reported that Nigeria’s total debt under President Buhari’s government has risen to N33.1 trillion.
But since he became president in 2015, N21 trillion has been borrowed to finance infrastructure and salaries of his government.
Debt breakdown shows that more than N10 billion has been borrowed daily, and each Nigerian owes about N160,000 taking into account the country’s debt.