Over N1.8 trillion was spent by the Federal Government to pay off debtors from January to May this year, leaving a meagre amount for infrastructure.
The government’s debt-to-revenue ratio was put at 97.8% during the period under review, higher than the projected 46.9% meants for the whole year.
The N1.8 trillion was sourced from the N1.84 trillion generated in the first five months of this year, which is still far from the projected N6.6 trillion revenue
For every N100 the administration of President Muhammadu Buhari made in the first five months of 2021, N97 was used to pay off debtors owned by the Federal Government.
Between January to May this year, the Nigerian government recorded a turnover of N1.84 trillion, but it used N1.8 trillion to service its debt.
Will FG outspend its debt payment project?
This means for the most part of the first half of 2021, the Federal Government’s debt-to-revenue ratio was 97.8%, and it has used 72.2% of its projected debt service for the year.
Out of N1.84trillion revenue, Nigerian government used N1.8 trillion to pay off debt
Note that FG had projected that debt service will gulp N3.1 trillion in twelve months of 2021, an amount that will be sourced from N6.6 trillion revenue.
This put the government’s projected debt service to revenue ratio for 2021 at 46.9%, which is lower than the debt service estimated for 2022.
It was gathered that next year, President Buhari’s administration will spend N3.6 trillion to pay off debt. For 2022, FG forecast its revenue to be N8.35 trillion.
President Buhari borrows N10 billion daily
In similar news, Legit.ng had previously reported that Nigeria’s total debt has risen to N33.1 trillion under President Buhari’s administration.
But since he became President in 2015, N21 trillion has been borrowed to fund infrastructure and salaries of his government.
Breakdown of the debt shows that over N10 billion has been borrowed daily, and every Nigerian owes about N160,000 considering the country’s debt.