The Federal Government spent over 2.89 trillion on debt servicing between January and August 2021.
Minister of Finance, Budget and National Planning Zainab Ahmed
announced this during the public presentation and breakdown of the
highlights of the 2022 appropriation bill held in Abuja.
She explained that in the first seven months of 2021, total spending stood
at 8.14 trillion naira out of which 2.88 trillion naira was utilised for debt
servicing, 2.75 trillion naira was spent on overhead cost, while 1.75
trillion naira was expended on capital projects.
Zainab, while commenting on revenue, stated that The Federal
Government generated a total of 3.9 trillion naira including, Company
income tax of 547.5 billion naira; Value added Tax collections of 235.7
billion naira, customs collections of 338.6 billion naira and other
revenues which amounted to 1.7 trillion naira.
The Minister observed that with a debt servicing cost of 2.89 trillion
naira and total revenue of 3.9 trillion naira, the federal government spent
about 74 per cent of its revenue on debt servicing within the review
period.
