In the first six months of 2021 (January-June), the federal government spent N2.02 trillion on debt service, according to Minister of Finance Zaina Ahmed.
On Monday, August 16, the Minister disclosed this when she spoke at the 2022-2024 medium-term expenditure framework/fiscal strategy paper (MTEF/FSP) committee interactive session in Abuja.
According to Ahmed, the federal government retained 67.3 percent of its revenue target.
The federal government spent N3.34 trillion on debt servicing last year out of total revenues of N3.42 trillion – meaning for every N100 earned in revenue, N97 was spent on debt servicing.
According to a report by the News Agency of Nigeria (NAN), oil revenue totaled N492.44 billion, representing a 49 percent performance, while non-oil revenue amounted to N778.18 trillion, representing a 104.5 percent performance. Tax revenues from companies income tax (CIT) and value-added tax (VAT) are ahead of budget targets at N397.02 billion and N129 billion, respectively.
This represents 116.5 percent and 108.2 percent targets for the period.
Ahmed said that Customs collections were N234.02 billion at 92.1 percent of target and other revenues were N922.09 billion – of which independent revenue was N558.13 billion.
The Minister stated that N5.81 trillion, or 92.4% of the budget had been spent, excluding the GOEs and project-related debt.
“Of the expenditure, N2.02 trillion was for debt servicing, which is 35 percent of the Federal Government expenditures and N1.795 trillion for personnel cost. This is including pension at 30.9 percent of Federal Government revenue.”she said
As of June, N1.3 trillion, or 84.7 percent, had been allocated for capital expenditures.
During 2020, the country faced serious economic challenges, while the microeconomic environment was significantly disrupted by the COVID19 pandemic, but the economy made a tepid recovery in 2021.