The Federal Government made a total of N3.25tn in 2020, according to a review of the budget performance of the 2020 Appropriation Act.
The review also showed that the Federal Government spent a total of N2.34tn on debt servicing within the year.
This means that 72 per cent of the government’s revenue was spent on debt servicing. It also puts the government’s debt servicing to revenue ratio at 72 per cent.
In 2019, The Federal Government made a total revenue of N3.86tn. Within the year, debt servicing gulped N2.11tn. This puts the Federal Government’s debt servicing to revenue ratio in 2019 at 54.66 per cent.
This means that between 2019 and 2020, the Federal Government’s debt servicing to revenue ratio jumped from 54.66 per cent to 72 per cent.
As of March 31, the Debt Management Office put Nigeria’s total debt at N33.11tn. Out of this figure, N20.64tn (62.33 per cent) was owed to domestic creditors, while N12.47tn (37.67 per cent) was owed to foreign creditors.