This development comes as the government continues to battle with high costs in relation to debt servicing to revenue ratio.
A review of quarterly statistical bulletin released by the Central Bank of Nigeria has shown that the federal government spent N700 of every N1000 it made on debt servicing in the first quarter of the 2024 fiscal year (first three months of the year).
In Q1 2024, the Nigerian government had a retained revenue of N1.76trillion.
In the same period, debt servicing gulped N1.31trillion, equating 74.4% of the government revenue.
This development comes as the government continues to battle with high costs in relation to debt servicing to revenue ratio.
Experts expressed worry that debt servicing may deny citizens of the country needed development.
Already there are concerns that continue to mount on Nigeria’s debt profile.
A SaharaReporters’ review of the country’s medium term expenditure framework (MTEF) has shown that the country plans to spend N29 trillion on debt servicing between 2024 and 2026.
Review shows that in 2024, the country plans to service debts with N8.2 trillion, N10 trillion in 2025 and another N11 trillion in 2026.
This will mean that in the next three years, a total sum of N29 trillion is planned to be spent on debt servicing by the government.
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