The Federal Government exceeded its debt service allocation by N1.15tn for the period between January and November 2021, documents have shown.

A copy of the public presentation of the 2022 approved budget by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, showed that the Federal Government allocated N3.32tn for debt servicing in 2021.

Further breakdown showed that from the total of N3.33tn, domestic debt was expected to gulp 2.18tn, foreign debt N940.98bn, and sinking fund N200bn. Based on the allocation, the document further showed that the Federal Government hoped to have spent a total of N3.05tn on debt servicing from January to November 2021.

Further breakdown showed that it hoped to have spent about N2tn on domestic debt servicing, N862.48bn on foreign debt servicing, and N183.33bn on sinking fund.

However, the minister’s presentation document showed that a total of N4.2tn was spent on debt servicing in 11 months, indicating a difference of N1.15tn or 37.9 per cent of the money allocated for debt servicing for the period.

Further breakdown showed that the government spent about N2.2tn on domestic debt servicing, N885.01bn on foreign debt servicing, and N600m on sinking fund.

Although there was no allocation for interest payment on Ways and Means, which is the government’s borrowing from the Central Bank of Nigeria, it still spent N1.12tn on the payment of interest. This then fuels indication that the payment of interests on Ways and Means was a major contributor to the excess in debt service allocation.



The PUNCH had reported that the Federal Government’s excessive borrowing from the CBN through the Means and Ways Advances window could have adverse effects on the apex bank’s monetary policy and subsequently harm domestic prices and exchange rates.


https://punchng.com/fg-overshoots-debt-servicing-by-n1-15tn-in-11-months-document/

The government of debtors.

Funny Government, so they will take this debt and leave NIgeria to be battling the resettlement?

So long as our source of money is only oil, and we don't diversify into increasing tax collection and revenue from other sources like agriculture, and mining (and even then, they are just as tenous as oil) we will always have to borrow.

Why don't we use our raw materials and make goods the world needs.?

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backbencher:
So long as our source of money is only oil, and we don't diversify into increasing tax collection and revenue from other sources like agriculture, and mining (and even then, they are just as tenous as oil) we will always have to borrow.

Why don't we use our raw materials and make goods the world needs.?

They will load our money through bullion vans to various homes!

If there is no money to steal, increase taxes and borrow more, money must be stolen.

backbencher:
So long as our source of money is only oil, and we don't diversify into increasing tax collection and revenue from other sources like agriculture, and mining (and even then, they are just as tenous as oil) we will always have to borrow.

Why don't we use our raw materials and make goods the world needs.?

Increasing tax collection from who? The Nigerians you people have greatly impoverished with very bad governance? Some of you don't get it at all

Other sources like agriculture ? When your current govt is actively supporting Fulani mercenaries to chase farmers of their lands and venture?

See Nigeria is going nowhere till the current occupants of Aso Rock vacate it

SarkinYarki:


Increasing tax collection from who? The Nigerians you people have greatly impoverished with very bad governance? Some of you don't get it at all

Other sources like agriculture ? When your current govt is actively supporting Fulani mercenaries to chase farmers of their lands and venture?

See Nigeria is going nowhere till the current occupants of Aso Rock vacate it

Yes, Nigeria would be better when APC goes..

Much better if the next goverment is ready to diversify