FG to Pay N6.31trn Interest on Public Debt in 2023
Nigeria’s finance ministry has indicated a plan to spend N6.31 trillion in the fiscal year 2023 as interest payments for her more than N41 trillion debt stock. This is significantly higher than the amount budgeted for in the fiscal year 2022 – N3.69 trillion.
FGN 2023 budget call circular revealed that the N6.31 trillion in respect of Debt Service is made up of N3.295 trillion for Domestic Debt, N1.20 trillion for service on ways & means and N1.814 trillion for Foreign Debt.
It said additionally, that N292.7 billion is provisioned for Sinking Fund to retire maturing loans amidst fiscal slippage and the expectation that the exchange rate will worsen to N435.70 to a dollar.
As of 30th April 2022, FGN’s retained revenue was N1.63 trillion which was 49% of the N3.32 trillion pro-rated budget. The shortfall of 51% is attributable to the underperformance of both oil and some non-oil revenue sources. Companies’ Income Tax revenue performed best at 98.6% of target.
The report shows that a total sum of N4.37 trillion -including the capital component of statutory transfers- has been set aside for critical capital expenditure. READ: CBN Announces Plan to Stop FX Sales to Banks
The circular stated that the thrust of the FGN’s capital expenditure programme in 2023 will be the completion of as many ongoing projects as possible, rather than starting new projects.
The federal government tells ministries, departments and agencies (MDAs) that new projects will not be admitted into the capital budget for 2023 unless adequate provision has been made for the completion/work programme of ALL ongoing projects. #FG to Pay N6.31trn Interest on Public Debt in 2023
