Nigeria’s cost of servicing debt surpasses the country’s retained revenue by N310 billion in the first four months of 2022

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In the first four months of 2022, Nigeria’s debt servicing costs exceeded the country’s retained revenue by N310 billion.

This was revealed in the federal government’s 2022 fiscal performance report for four months, which was released on Thursday, July 21.

While the federal government’s total revenue was N1.63 trillion during the period, debt service consumed N1.94 trillion.

According to the report,

“The total expenditure for 2022 is estimated to be N17.32 trillion, with a prorata spending target of N5.77 trillion by the end of April.”

“As of April 31st (sic), actual spending was N4.72 trillion.” N1.94 trillion of this amount was for debt service, and N1.26 trillion was for personnel costs, including pensions.

“As of April, capital expenditure had totaled N773.63 billion.”

“As of April 2022, the FGN’s retained revenue stood at N1.63 trillion, representing 49 percent of the prorata target of N3.32 trillion.”

According to the report, the federal government received N285.38 billion in oil revenues (representing a 39 percent performance), while non-oil tax revenues totaled N632.56 billion (representing an 84 percent performance).

The federal government also received N401.8 billion in revenue from corporate income tax (CIT) and value-added tax (VAT) (VAT).

It continued;

“CIT and VAT collections were N298.83 billion and N102.97 billion, respectively, representing 99 percent and 98 percent of their targets.”

“Customs collections (which include import duties, excise and fees, as well as federation account special levies) fell N76.77 billion short of the target” (25.42 percent).

“Other revenues totaled N664.64 billion, of which N394.09 billion was independent revenue.”

In response to the report, Zainab Ahmed, Minister of Finance, Budget, and National Planning, stated that urgent action is required to address revenue underperformance and expenditure efficiency at the national and sub-national levels.