The Debt Management Office revealed that Nigeria’s debt rose to about N30.72 trillion under the regime of the President, Major General Muhammadu Buhari (retd.) between July 2015 and June 2022.
The DMO data revealed that as of June 30, 2015, Nigeria owed a total of N12.12 trillion but by June 30, 2022, the amount had increased to N42.84 trillion, a 253.47 percent increase.
The PUNCH reported that in spite of the significant growth in debt over time, the government still intends to borrow N8.4 trillion in 2023.
The cause of this is not implausible given that the budget for spending has increased significantly under Buhari.
According to statistics analyzed by Punch’s correspondents, the Federal Government increased the estimated expenditure in its annual budget by almost 238,45% between 2016 and 2023.
The budget for the government’s expenditures for the 2016 fiscal year was N6.06 trillion, according to information from the Budget Office of the Federation. However, the expected aggregate expenditure in the newly proposed 2023 budget was set at N20.51tn, more than three times the amount authorized in 2016.
The N17.12 trillion in expected government spending for 2023 consists of N6.9 trillion in recurring expenses, N5.9 trillion in capital expenditures, and N3.9 trillion for debt servicing. Statutory transfers total N744.11 billion, non-debt recurrent costs N8.27 trillion, personnel costs N4.99 trillion, pensions, gratuities, and retiree benefits N854.8 trillion, overheads N1.11 trillion, capital expenditures N5.35 trillion, including the capital component of statutory transfers, debt service N6.31 trillion, and sinking fund N247.73 trillion to retire certain maturing bonds.
Sadly, the budgets have not trickled down to the productive sector of the economy despite the substantial allocations.
