In 2023, Nigeria faced a severe financial crisis. According to BudgIT, a civic-tech organization, the federal government’s expenditures far exceeded its revenue.
Revenue:
* Total revenue: N5.99 trillion
* FAAC: N3.80 trillion
* Independent sources: N1.98 trillion
* Federation account share: N2.39 trillion
* Exchange rate differences: N715.75 billion
* VAT: N441.87 billion
Expenditures:
* Debt servicing: N8.56 trillion (43.9%)
* Non-debt expenses: N5.42 trillion (27.8%)
* Infrastructure and capital projects: N4.49 trillion (23%)
Deficit:
* Total deficit: N13.50 trillion
* Percentage of revenue: 225%...Read Full Article [Click Here>]
The most concerning aspect was the government’s extensive borrowing. Debt servicing consumed almost half of all expenditures, surpassing the total revenue generated. This unsustainable trajectory has weakened Nigeria’s fiscal position and raised concerns about its long-term financial stability. As BudgIT emphasized, this situation requires immediate attention and a shift towards fiscal responsibility.
Source: Daily Post
