The Minister of Finance, Budget and National Planning, Zainab Ahmed, has disclosed that revenue generation of the government for the first four months of this year fell behind Nigeria’s debt service.
Debt service for the period of first quarter and April was N310 billion more than the revenue grossed, as the former was stated to be N1.94 trillion, higher than the turnover of N1.63 trillion.
The report indicates the government spent more than 100% of its revenue on paying debt. Although the International Monetary Fund (INF) had projected that Nigeria will spend 92% of its revenue for full year 2022.
According to the data on the debt service and revenue generation, it explained that, “The aggregate expenditure for 2022 is estimated at N17.32 trillion, with a prorata spending target of N5.77 at end of April.
“The actual spending as of April 31st was N4.72 trillion. Of this amount, N1.94 trillion was for debt service, and N1.26 trillion was for personnel costs, including pensions.
“As at April, N773.63 billion has been spent on capital expenditure. As of April 2022, FGN’s retained revenue was only N1.63 trillion, 49 percent of the prorata target of N3.32 trillion.”
Breaking down the earnings generated from government’s revenue sources, it was gathered that company income tax (CIT) and value-added tax (VAT) generated N401.8 billion.
Non-oil tax revenues rose by 84% to N632.56 billion, while oil revenues increased by 39% to settled at N285.38 billion, “CIT and VAT collections were N298.83 billion and N102.97 billion, representing 99 percent and 98 percent of their respective targets.” The statement reads.
Adding, “Customs collections (made up of import duties, excise and fees, as well as federation account special levies) trailed target by N76.77 billion (25.42 percent). Other revenues amounted to N664.64 billion, of which independent revenue was N394.09 billion.”
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