How Nigeriaâ€™s debt repayment is taking huge toll on yearly budgets - PREMIUM TIMES
Nigeria is spending a quarter of its 2021 Budget on debt servicing, a trend that has continued for years.
With N3.3 trillion budgeted for debt servicing in the assented 2021 budget, Nigeria is poised to spend about a quarter (24.3 per cent) of the entire N13.6 trillion budget on debts, a PREMIUM TIMESâ€™ analysis has shown.
This followed a trend that has been in place since 2016.
In 2016, the country spent almost a quarter (about 24 per cent) of its budget to service debts. Of the N6.6 trillion budgeted for 2016, the government earmarked N1.5 trillion on debt financing.
The sum of N1.6 trillion was proposed for servicing debts out of the total (N7.3 trillion) budgeted for 2017.
In 2018, the figure rose as N2.2 trillion or 24.17 per cent was pegged for debt servicing in the N9.1 trillion budget.
In 2019, the government proposed to spend 24 per cent (N2.14 trillion) of the N8.9 trillion expenditure on debt service.
Meanwhile in 2020, the Nigerian government proposed a spending plan of N10.3 trillion. Nearly a quarter of that amount (N2.5 trillion) was budgeted to service debts.
For the 2021 budget, the appropriation figure has been put at N3.3 trillion, an equivalent to 24.3 per cent.
President Muhammadu Buhari signed this yearâ€™s budget on New Yearâ€™s eve, days after both chambers of the National Assembly passed the N13.6 trillion budget.