The federal government spent 97.5 percent of its January to May 2020 revenue on debt servicing.According to the 2021 budget call circular published by the Budget Office, the federal government generated total revenue of N1.62 trillion out of the N2.62 trillion projected for the period.

During this five-month period, N1.58 trillion was spent on debt servicing; representing 97.5 percent of the N1.62 trillion revenue generated.

In June, the International Monetary Fund projected that debt servicing will gulp all of FG’s revenue in 2020.

According to the document, the federal government spent a total of N3.98 trillion within the five-month period; N1.79 trillion was said to have been released for non-debt recurrent expenditure, including salaries, pensions and overheads.

A total of N378.85 billion was released for capital expenditure during the period.

A breakdown of the revenue generated showed that N701.6 billion was realised as oil revenue while non-oil tax revenues totalled N439.32 billion (65 percent of revised target).

A total of N213.24 billion was generated from companies income tax, N68.09 billion from value-added tax and N158 billion was realised from customs collection.

The 2020 budget had to be revised after crude oil prices fell on the back of a price war between Russia and Saudi Arabia and the COVID-19 pandemic disrupted global supply chains.

Between the January and May period, the federal government incurred a total debt of N2.35 trillion.The revised N10.8 trillion 2020 budget includes a N4.98 trillion deficit which is to be mainly financed by borrowing.

SmartProf:
I'm sure the cardinal job of the minister of finanace in this govt is to look for countries and organizations that Nigeria can keep borrowing from.

When she finds any, it gives Buhari so much sweet sensation, while the senate president is on standby like a houseboy to knack emergency approval...Very clueless and useless leaders.

slivertongue:
of course this administration is incompetent, they are illiterates when it comes to economic matters. they are experts in borrowing

joyandfaith:
Soon,FG will have to burrow to pay interests on loans....

SmartProf:
I'm sure the cardinal job of the minister of finanace in this govt is to look for countries and organizations that Nigeria can keep borrowing from. When she finds any, it gives Buhari so much sweet sensation, while the senate president is on standby like a houseboy to knack emergency approval...Very clueless and useless leaders.

googi:
You guys don't get it.
It is legal to borrow and transparent to service debts But illegal to launder � money.

The same Finance Minister that lectured us the advantages of paying off our debts came back in the following Government to teach us the advantages of borrowing at low rate.

Harvard and Oxford Economics!

As the commanding officer of the Third Armored Brigade at Jos, Buhari played a leading role when President Shehu Shagari crushed the Maitatsine riots of 1980 in the Bulumkutu area of Maiduguri.