FG Spends N19 Trillion in 2023 Despite Generating Only N5.9 Trillion Revenue: BudgIT Report

The Federal Government of Nigeria spent N19.5 trillion in 2023, more than three times its revenue of N5.99 trillion, according to a report by BudgIT, a civic-tech non-profit organization.

In a social media post on Monday, BudgIT highlighted a significant fiscal deficit of N13.5 trillion, representing 225% of the total revenue. The figures are based on the 2023 fiscal accounts report from the Accountant General of the Federation.

Revenue sources for the government included N3.80 trillion from the Federation Account Allocation Committee (FAAC) and N1.98 trillion from independent revenue streams. Additionally, the government’s share of the federation account contributed N2.39 trillion, while exchange rate differences brought in N715.75 billion. Value-added tax (VAT) added another N441.87 billion.

Debt servicing emerged as the largest expenditure, consuming N8.56 trillion, which accounts for 43.9% of the total budget. Non-debt-related spending amounted to N5.42 trillion (27.8%), and capital expenditure was recorded at N4.49 trillion (23%).

BudgIT expressed concern over the government’s growing fiscal irresponsibility, noting that a significant portion of spending is directed toward debt servicing, which far exceeds the revenue generated. This trend of borrowing more than what is earned has led to a widening fiscal deficit.

Earlier, on July 9, the Budget Office of the Federation reported that N5.78 trillion had already been spent on debt servicing in the first nine months of 2023 alone.