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Nigeria spends 90.5% of revenue to service debt in six months ~Budget Office

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Nigeria spent N2.02 trillion on debt servicing, representing 90.5 per cent of the total revenue in the first six months of the year.

According to the Technical Adviser to the Director General of the Budget Office, Alfred Okon, Nigeria generated a total of N2.23 trillion in the first six months of the year.

Okon while presenting the “Overview of FGN 2022 Budget Call Circular” report, that as of June 2021, the federal government’s retained revenue was N2.23 trillion, which is 67.3 per cent of prorata target of N3.3 trillion for the review period.

The report stated that as of June 2021, the federal government’s retained revenue was N2.23 trillion, which is 67.3 percent of prorata target of N3.3 trillion for the review period.

The total revenue comprises oil revenue of N492.44 billion, non-oil tax revenue of N778.18 billion, Company income tax of N397.02 billion, Value Added Tax of N129 billion and Customs collections of N234.02 billion.

Other revenues amounted to N922.09 billion, of which Independent revenues was N558.13 billion.

Okon noted that the N2.02 trillion used to service debt in the first half of this year represented 35 percent of total expenditure of N5.81trillion.

According to the report, “On the expenditure side, N5.81 trillion (representing 92.4 percent of the prorated budget) has been spent. This excludes GOEs’ and project-tied debt expenditures.

“N2.02 trillion was for debt service (35 percent of FGN expenditures); and N1.795 trillion for Personnel cost, including Pensions (30.9 percent of FGN revenues).”

READ ALSO: Nigeria’s oil firm NNPC posts N287 bln profit in 2020, says Buhari

It stated that as of August, N1.3 trillion had been released for capital expenditure, representing 22.3 percent of total expenditure.

In his remarks,  the DG, Budget Office, Ben Akabueze, reiterated the government’s commitment to ensuring the timely submission and approval of the 2022 budget.

To achieve this, he said the government has already deployed a series of activities including engagements and stakeholder consultations.

“The current federal government is determined to ensure consistent and timely preparation, submission and approval of annual budgets as part of its Public Financial Management (PFM) reforms, just as we have done for the 2020 and 2021 budgets.

“To achieve this, we have already commenced a series of activities related to the process of preparing the 2022 Budget.

“These include a series of engagements and stakeholder consultations with key revenue generating agencies, civil society organisations (CSOs), the National Executive Council (NEC), the National Assembly as well as the Federal Executive Council (FEC).

“Another key activity on the 2022 Budget Calendar is the training of MDAs’ personnel who will be involved in budget preparation.

“The main goal of this training is to provide continuous learning to equip budget personnel with the requisite knowledge, skills and the tools they require to prepare and submit the 2022 Budget in a timely manner.

“The budget is also intended to be in tandem with extant FGN policies and guidelines as articulated in the 2022 FGN Budget Call Circular and other relevant laws/policies,” Akabueze said.

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