Nigeria's cost of servicing debt surpassed the country's retained income by N310 billion in the first four months of 2022.
This was disclosed in the 2022 fiscal performance report for four months released on Thursday July 21, by the federal government.
While the federal government’s total income for the period was N1.63 trillion, debt service gulped N1.94 trillion.
The report read, “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 (sic) 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.”
From the report, the federal government’s share of oil revenues was N285.38 billion (representing 39 percent performance), while non-oil tax revenues totalled N632.56 billion a performance of 84 percent.
The federal government also generated N401.8 billion from company income tax (CIT) and value-added tax (VAT).
It added, “CIT and VAT collections were N298.83 billion and N102.97 billion, representing 99 percent and 98 percent of their respective targets.
“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.”
Federal Minister of Finance, Budget and Planning of Nigeria, Zainab Ahmed speak to the report said, “urgent action is needed to address revenue underperformance and expenditure efficiency at national and sub-national levels.”