Nigeria’s Minister of Finance, Budget and National Planning, Zainab Ahmed, said the Federal Government has projected generating N8.46 trillion revenue for 2023, with oil accounting for 22.4% of the earnings.
According to Ahmed, oil-related sources will generate N1.9 trillion, while the federal government will gross N6.56 trillion from non-oil sources, she told the House of Representatives Committee on Finance.
Meanwhile, Ahmed defended the constant borrowing of the federal government, stating that Nigeria will not default on debt service, even if it gulps 90 percent of the country’s revenue.
Recall that Prime Business Africa had reported that the federal government will borrow N9.32 trillion from domestic and foreign creditors to finance 2023 budget deficit, with the former accounting for N7.4 trillion, and the latter expected to provide N1.8 trillion.
President Muhammadu Buhari’s administration has come under criticism for its constant loan request despite revenue falling and debt servicing overshooting revenue or consuming 90 percent of earnings.
Defending the debt under President Buhari, Ahmed said, “We planned that 60 percent of revenue would be spent on debt servicing, but in some months, the ratio went up to 90 percent.” Adding that, “We have been able to, consistently without fail, service our debt, and we do not have any projections even in the near future that we will fail.
“We actually follow the Medium Term Debt Management Strategy very strictly; the debts are not taken haphazardly, and they are planned. They are appropriated, and then we borrow against appropriation.”