91% Of Revenue Spent On Debt Servicing

 91% Of Revenue Spent On Debt Servicing

The Federal government spent N2.02 trillion on debt servicing in the first six months of this year.

This represents 90.5 percent of the total revenue of N2.23 trillion generated by the federal government within the period.

This was disclosed by the Technical Adviser to the Director General of the Budget Office, Alfred Okon while presenting the “Overview of FGN 2022 Budget Call Circular” report at a training on “Government Integrated Financial Management Information System Budget Preparation Subsystem For Ministries, Department and Agencies.”

The report stated that as of June 2021, the federal government’s retained revenue was N2.23 trillion, which is 67.3 percent of pro rata 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 129 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.

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

“N2.02 trillion was for debt service (35% of FGN expenditures); and N1.795tn for Personnel costs, including Pensions (30.9% of FGN revenues)”, the report stated.

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

Kehinde Ogunyale

Freelance Investigative and Data Journalist

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