A total of 72 per cent of the revenue generated by the Federal Government in the year 2020 was used to service the country’s rising debt, according to a review of the budget performance of the 2020 Appropriation Act.
According to the review, the Federal Government earned a total of N3.25 trillion as revenue in 2020, with N2.34 trillion on debt servicing within the same period under review.
The amount subsequently represents 72 per cent of the government’s debt servicing to revenue ratio, a report by the Punch revealed.
The 2020 figure is a monumental 17.34 per cent increase from the 54.66 per cent used by the Federal Government to service debt from the revenue it earned in 2019.
The Federal Government made a total revenue of N3.86 trillion in 2019 and expended N2.11 trillion to service debt in the year under review.
As of March 31, the Debt Management Office put Nigeria’s total debt at N33.11 trilion. Out of this figure, N20.64 trillion (62.33 per cent) was owed to domestic creditors while N12.47 trillion (37.67 per cent) was owed to foreign creditors.
Of the domestic debt profile, N16.51 trillion belong to the Federal Government while N4.12 trillion belong to the 36 states of the federation and the Federal Capital Territory Administration (FCTA).