The Nigerian Government revealed that it spent N12.87 trillion against the N17.126 trillion budgeted for 2022 as of November 30, 2022.
This was disclosed by Nigeria’s Finance Minister Mrs Zainab Ahmed, at the Public Presentation and Breakdown of the Approved Federal Government 2023 Budget on Wednesday in Abuja.
The Minister noted that the minister said the fiscal deficit for 2022 was estimated at N8.17 trillion, inclusive of the supplementary Budget.
Debt Service: The Minister stated that N5.24 trillion was spent on debt service for the period.
- “The actual spending as of November 30 was N12.87 trillion.
- “Of this amount, N5.24 trillion was for debt service; N3.94 trillion for Personnel Costs, including pensions; Statutory Transfers, Overhead and Service Wide Votes expenditures totalled N1.81 trillion; and N1.88 billion was released for capital expenditure.”
Fiscal deficit: She added that the fiscal deficit for the period was N6.37 trillion, citing that the fiscal deficit for 2022 was estimated at N8.17 trillion, inclusive of the supplementary Budget.
“The deficit was totally financed by borrowings, mostly from domestic sources.”
2023 Budget deficit: The Nigerian Government revealed the 2023 budget which was passed at N21.82 trillion will have a budget deficit of N11.34 trillion which would be financed through domestic and foreign sources and also multi-lateral-bilateral loan drawdowns.
The Minister said at N6.31 trillion, debt service is 29% of government expenditure.
- “ This is 71% higher than the estimate for 2022, including interest repayment of N1.2 trillion for CBN overdraft called ways and means loans.
- “You will see that statutory transfer is N967 billion, and debt service N6.3 trillion, higher than N3.685 trillion projected in 2022 budgeted”
- Ahmed revealed the recurrent non-debt expenditure has increased from N7.108 trillion to N8.32 trillion and also an aggregate capital expenditure that has declined from N6.681 trillion to N6.445 trillion.
What you should know
Nairametrics reported that Nigeria’s Minister of Finance, Mrs Zainab Ahmed, revealed that only N3.36 trillion was earmarked for fuel subsidy in Nigeria’s 2023 budget.
The Minister said fuel subsidy payments will remain up to mid-2023, based on the 18-month extension announced in early 2022. This means fuel subsidy payments will be stopped in June 2023, after a new administration has been inaugurated following the outcome of the general elections in February-March 2023.
