Debt Payments Consume 80% of Nigeria’s Revenue Collection
- Government allocated most of its income to service debt
- January to November expenditure was double Nigeria’s income
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Nigeria spent 80% of its revenue to pay debt in the first 11 months of last year, showcasing the challenge for the government that’s pledged to improve its finances in 2023.
The outgoing administration of President Muhammadu Buhari allocated 5.2 trillion naira ($11.3 billion) to servicing debt between January and November, while generating income of 6.5 trillion naira, Finance Minister Zainab Ahmed said in a presentation on Wednesday. The government in its 2023 budget has pledged to boost collection and bring down debt payments to 60% of revenue.