2023: THE FEDERAL GOVERNMENT SPENDS N6.55 TRILLION FOR DEBT SERVICING IN ORDER TO FUND A N10 TRILLION DEFICIT THROUGH BORROWING.

According to the Appropriation Bill passed by the National Assembly on Wednesday, the Federal Government has set aside N6.55 trillion for debt servicing in 2023.

The Senate and House of Representatives in Abuja approved the N21.82 trillion budget as the fiscal year’s total expenditure.

The initial bill was N20.1 trillion, however it was increased by N1.31 trillion to N21, 827,188,747,391.

Nigeria’s national debt reached N44.6 trillion in the third quarter of this year (Q3 in 2022), representing a 2.9% quarter-on-quarter decrease from N42.84 trillion in the second quarter of 2022.

The data were provided by the Debt Management Office (DMO) in a press release on December 9, 2022.

According to DMO, the increase in the debt profile was caused by fresh borrowings by the FG to partially fund the deficit in the 2022 Appropriation Act, which included borrowings by sub-nationals.

Meanwhile, the new budget allocated N6.55 trillion to debt service next year, as the country anticipates a new administration by May 29th, 2023, to build a fresh economic blueprint to address the large debt.

In addition, the budget calls for N8.32 trillion in recurrent (non-debt) spending and N5.97 trillion in capital spending for the fiscal year ending December 31, 2023.

Meanwhile, the N10, 782, 078, 435, 531 budget gap is scheduled to be financed through borrowing.