BudgIT, a Nigerian civic organisation that applies technology for citizen engagement with institutional improvement to facilitate societal change has shown that Nigerian government spent 97% of revenue to service debt in 2020.
According to the organization in its report, of the N3.42 trillion generated as revenue, Nigeria spent N3.34 trillion on debt servicing. The report said total expenditure stood at N10.01 trillion.
“This means nearly all FG’s salaries, overhead & CAPEX (Capital Expenditure) were financed with loans & CBN support,” the organization disclosed.
BudgIT in its “2020 Budget Implementation Analysis” report released on Friday, N4.65 trillion was spent on non-debt recurrent expenditure.
“In 2020, FG projected a total revenue of N5.37tn; however, the actual total revenue eventually stood at N3.42tn. This represents a 63.71% revenue performance.
“The cost of servicing FG’s debt is drowning Nigeria as the cost continues to grow, gulping a total of N3.34tn (97%) from the total revenue.”
The Nigerian government’s revenue from oil, however, recorded a significant boost of N1.41 trillion, surpassing the oil revenue projections of N1.01 trillion.
Revenue in the non-oil sector stood at N1.26 trillion as against the projections of 1.62 trillion.
In the report, the organization said the government’s total expenditure of N10.01 trillion represents 93 percent performance, when compared with the budgeted amount of N10.81 trillion, adding that capital expenditure keeps getting the short end of the stick, as only N1.60tn was devoted to capital projects in 2020.
BudgIT said, “This is not acceptable!
“Recall that FG had a CAPEX plan (exclusive of transfers) of N2.69tn, this means only 59.5% (slightly over half) of the 2020 projection was actualised.
“The budget of N428.03 for Statutory Transfers in 2020 was disbursed. However, there is no breakdown or implementation report of how this money was spent/disbursed.”