Connect with us

Economy

72% Of FG’s Revenues Spent On Debt Servicing

Published

on

Manufacturers, Expert Frown At New Tax On Carbonated Drinks

The Federal Government made a total of N3.25 trillion in 2020, according to a review of the budget performance of the 2020 Appropriation Act.

The review also showed that the Federal Government spent a total of N2.34 trillion on debt servicing within the year.

This means that 72 per cent of the government’s revenue was spent on debt servicing. It also puts the government’s debt servicing to revenue ratio at 72 per cent.

In 2019, The Federal Government made a total revenue of N3.86 trillion. Within the year, debt servicing gulped N2.11 trllion. This puts the Federal Government’s debt servicing to revenue ratio in 2019 at 54.66 per cent.

This means that between 2019 and 2020, the Federal Government’s debt servicing to revenue ratio jumped from 54.66 per cent to 72 per cent.

As of March 31, the Debt Management Office put Nigeria’s total debt at N33.11tn. 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.

The N12.47 trillion foreign debt was not broken into federal and subnational segments. However, historically, about 86 per cent of Nigeria’s foreign debt usually belong to the Federal Government.

Although the Federal Government consistently argues that its debt to Gross Domestic Product is low, economists and experts say that it is better to use the debt servicing to revenue ratio to measure a country’s indebtedness.

This is because the debt servicing to revenue ratio measures a country’s capacity to repay its loans.

Although the Federal Government had projected a revenue of N5.84 trillion for 2020, actual revenue was N3.25 trillion.  It also projected to spend N2.68 trillion on debt servicing.

As in the years before, a greater percentage of the country’s revenues came from oil in 2020. Oil revenue contributed N1.41 trillion, non-oil sources contributed N1.26 trillion, while independent funding sources contributed N578.45 billion.

In 2020, the Federal Government spent N3.17 trillion on personnel and overhead costs, two segments of the nation’s recurrent expenditure.

The government spent N1.57 trillion on capital expenditure. Total expenditure for the year was N9.75 trillion, with the nation borrowing a total of N2.06 trillion as domestic borrowing in the year.

In 2019, Nigeria made N3.86tn as revenue. Oil revenue contributed N1.620 trillion; non-oil revenue contributed N1.69 trillion, while independent funding contributed N547.270 billion.

The Federal Government spent N2.37 trillion on overhead and personnel cost within the year and N1.17 trillion on capital expenditure. Total debt servicing gulped N2.11 trillion of government revenue. Total expenditure for the year was N8.29 trillion, and total borrowing was N912.82 billion.

In 2018, the Federal Government generated N3.48 trillion as revenue. Revenue from oil contributed N1.96 trillion; non-oil contributed N1.12 trillion, and independent funding was N395.2 billion.

Overhead and personnel cost gulped N2.05 trillion, while N736.51 billion was spent capital projects. Total debt servicing gulped N2.09 trillion of government revenue. This put debt servicing to revenue ratio at 60.06 per cent. Expenditure for the year totalled N6.27 trillion, and total borrowing for the year was N1.74 trillion.

According to the budget office, in 2020, the Federal Government continued to meet its non-discretionary expenditures even as budget implementation continued to be affected by poor revenue outcomes.

The office said that the performance of the economy during the fourth quarter of 2020 was encouraging, considering developments in the global economy and the performance of other economies.

However, it said, it was important to accelerate efforts towards improving the growth record and revenue performance.

The office added that enhancing revenue collection in 2021 was key to the successful implementation of the 2021 budget.

In its fourth quarter 2020 budget implementation document, the office said, “Efforts to moderate the growth in recurrent expenditure and particularly personnel and recurrent debt in 2021 is critical even as effective implementation of the COVID-19 containment measure continues to be paramount.

“The Federal Government has reiterated its commitment to improved openness, transparency and accountability in budget preparation, implementation, monitoring and evaluation, and feedback.

“In view of this, strict adherence to budget implementation guidelines and the governance framework on monitoring of capital budget implementation will continue to be followed.

“Efforts would also be geared towards fostering efficiency in budget implementation, while ensuring effective project management in 2021.”

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Economy

Dollar To Naira Exchange Rate Today (Tue, Jan. 18, 2022)

Published

on

Dollar To Naira Exchange Rate Today (Tue, Jan. 18, 2022)

Dollar to naira, on Tuesday, January 18, 2022, opened at (undisclosed) at the Investors & Exporters FX window ( I&E FX Window), where the currencies officially trade.

According to the data at the FMDQ Security Exchange where forex is traded officially, dollar to naira exchange rate stood at (undisclosed).

This would mean that the Nigerian currency either gained or lose against the United States dollar, as foreign exchange (forex) trading closed at N414.5 per $1 on Monday, January 17.

How much is dollar to naira at the black market today?

Going by sources at the Bureau De Change (BDC) in Lagos, dollar to naira was bought for N567 and sold for N570 in the black market in the state.

It is however pertinent to note that the Central Bank of Nigeria (CBN) does not recognise the parallel market (black market), as it has directed individuals who want to engage in forex to approach their respective banks.

Continue Reading

Economy

Dollar To Naira Exchange Rate Today (Monday, Jan. 17, 2022)

Published

on

Dollar To Naira Exchange Rate Today (Monday, Jan. 17, 2022)

Dollar to naira, on Monday, January 17, 2022, opened at N414.5 at the Investors & Exporters FX window ( I&E FX Window), where the currencies officially trade.

According to the data at the FMDQ Security Exchange where forex is traded officially, dollar to naira exchange rate stood at (undisclosed).

This would mean that the Nigerian currency gained against the United States dollar, as foreign exchange (forex) trading closed at N414.283 per $1 on Friday, January 14.

How much is dollar to naira at the black market today?

Going by sources at the Bureau De Change (BDC) in Lagos, dollar to naira was bought for N567 and sold for N570 in the black market in the state.

It is however pertinent to note that the Central Bank of Nigeria (CBN) does not recognise the parallel market (black market), as it has directed individuals who want to engage in forex to approach their respective banks.

Continue Reading

Economy

IPPIS Loan Application Form Link For Nigerian Civil Servants

Published

on

IPPIS Loan Application Form Link For Nigerian Civil Servants

Although the Integrated Payroll and Personnel information system (IPPIS) might have been conceptualised in 2016, the usage continues to gain rise among Nigerian civil servants.

Wondering what the system was designed to do? It’s not that difficult to use, as it is a centralised payroll platform that President Muhammadu Buhari floated to help his administration plan and manage the payments of the government’s workers.

With IPPIS, the government is sure that there is no loophole in the disbursement of pays.

Interestingly, aside from the fact that IPPIS is used for paying workers, civil servants can also take advantage of it to process non-interest loans.

With a number exclusively designed for you, IPPIS Loan can get directly deposited to your bank account in a simple step.

Who is qualified for IPPIS loan?

While the IIPPIS loan is available for any civil servants of any grade/level, Newsrand understands that only employees of government ministries, departments, or agencies, can take advantage of it.

Do you want to take 2022/2023 IPPIS Loan Registration Form? If Yes, you need the following:

  • Applicant must have IPPIS number
  • Applicant must have Civil Servant Salary Payslip
  • Applicant must have Bank statement of account
  • Applicant must have Employment / Confirmation / Deployment Letter (Any of the following)
  • Applicant must provide Bank Verification Number (BVN)
  • Applicant must provide Valid National

What is the maximum IPPIS loan one can get?

The maximum IPPIS loan that one can get is 70% of one’s net salary, which is believed would enable one to maintain a trust flow and ensure that one pays back before the due dates.

Continue Reading

Trending