Tinubu Govt Earns N6Trillion Retained Revenue In 9 Months, Spends N7.9Trillion To Service Debt


 December 23, 2024

News

This substantial increase in debt servicing costs is putting a strain on the country's finances, with debt repayments now accounting for a significant portion of the government's expenses.



Nigeria's debt servicing costs have surged significantly, with a whopping N7.9 trillion spent between the first and third quarters of 2024. 

Breaking it down, the government spent N2.2 trillion on debt servicing in the first quarter, from January to March, followed by N3.7 trillion in the second quarter, from April to June, and another N2 trillion in the third quarter, from July to September. 


This substantial increase in debt servicing costs is putting a strain on the country's finances, with debt repayments now accounting for a significant portion of the government's expenses. 


In the first half of 2024, debt servicing payments rose by 69% to N6.04 trillion, compared to N3.58 trillion in the same period in 2023.


Between January and September, the government earned N6 trillion as retained revenue.


According to the data, in the first quarter of 2024 (January to March), the retained revenue of the government stood at N1.4 trillion, the retained revenue in the second quarter (March to June stood) stood at N2.4 trillion while the retained revenue in the third quarter (July to September) stood at N2.2 trillion, totalling N6 trillion. 


There have been concerns about the rising spending on debt servicing, which experts say affects the country’s growth and development. 


Already, President Bola Tinubu’s administration plans to spend 33.1% of its proposed expenditure in 2025 on debt servicing.


Also, the administration has announced plans to spend N15.81 trillion on debt servicing in the 2025 fiscal year.


With a total expenditure package of N47.90 trillion, it would mean that the government plans to spend 33.1% of its expenditure on debt servicing in the 2025 fiscal year.


 


SaharaReporters earlier reported that Nigeria is set to spend N50 trillion on debt servicing between 2025 and 2027, based on a review of the medium-term expenditure framework of the country.


According to the document, in 2025, the government plans to spend N15.3 trillion on debt servicing, N15.5 trillion in 2026 and N19.4 trillion in 2027.


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