According to the report, the government generated N5.99 trillion in revenue in the 2023 fiscal year, but spent N19.50 trillion, resulting in a deficit of N13.5 trillion.
A recent report by BudGIT, a civic tech organization, reveals that the Nigerian government’s expenditure in 2023 exceeded its revenue by a factor of three.
According to the report, the government generated N5.99 trillion in revenue in the 2023 fiscal year, but spent N19.50 trillion, resulting in a deficit of N13.5 trillion.
This significant gap indicates that the government relies heavily on borrowing to meet its financial obligations, raising concerns about the country’s fiscal sustainability.
Former President Muhammadu Buhari left office on May 29, 2023, handing over to President Bola Tinubu, the incumbent leader.
In a post on its X handle, BudGIT said, “According to the 2023 Fiscal Accounts Report of the Accountant General of the Federation, Nigeria’s Federal Government made a revenue of N5.99tn, spent N19.50tn, and recorded a deficit of N13.50tn—225% of the total revenue.”
A detailed analysis of the government’s revenue reveals that N3.80 trillion was derived from the Federation Account Allocation Committee (FAAC), while independent revenue generated by the federal government amounted to N1.98 trillion.
According to BudgIT, a significant portion of the budget (43.9%) – N8.56 trillion – was allocated towards debt servicing, making it the largest single expense.
Notably, this dependence on borrowing continues to finance the government’s budget. In contrast, capital expenditure received N4.49 trillion, which is approximately half of the amount spent on debt servicing.
“It goes without saying that a significant portion of government spending was directed toward debt servicing, surpassing the revenue generated.
“As a result, the government continues to drift away from fiscal responsibility by borrowing more than it earns, resulting in a deficit of N13.50tn,” BudgIT stated.
Nigeria struggles with revenue generation and effective management of its limited resources, leading to a reliance on borrowing.
This, in turn, results in substantial debt servicing costs and diverting funds away from critical capital infrastructure projects that could benefit citizens.
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