A BudgIT report highlights the alarming fiscal imbalance in Nigeria, revealing that the Federal Government spent 225% more than its revenue in 2023, resulting in a N13.5 trillion deficit. Financial experts express concern over the growing debt burden.
In a startling revelation, BudgIT, a prominent tech-civic and social accountability organization, has disclosed that the Nigerian Federal Government’s spending for the 2023 fiscal year exceeded its revenue by an alarming 225%. The report, based on an analysis of fiscal accounts from the Office of the Accountant-General of the Federation, paints a concerning picture of Nigeria’s financial management.
According to BudgIT, the Federal Government spent a total of N19.50 trillion in 2023, despite generating only N5.99 trillion in revenue. This expenditure, which is three times the government’s income, resulted in a massive deficit of N13.50 trillion, underscoring the country’s growing fiscal imbalance.
The report breaks down the sources of the government’s revenue, revealing that N3.80 trillion was sourced from the Federation Account Allocation Committee, N1.98 trillion from the Federal Government’s independent revenue, and an additional N202.54 billion from various other sources. Despite these revenue streams, the government’s spending far outpaced its income, leading to what financial experts describe as a dangerous drift away from fiscal responsibility.
The findings have sparked concerns among financial analysts, who warn that the country’s rising debt is becoming increasingly unsustainable. Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise, emphasized the need for the government to implement more stringent measures to reduce the cost of governance.
“Spending beyond one’s means is a recipe for financial disaster. The Nigerian government must urgently address this alarming trend by cutting unnecessary expenses and ensuring more efficient use of public funds,” Yusuf stated.
As Nigeria grapples with the implications of this deficit, experts are calling for a renewed commitment to fiscal discipline to safeguard the country’s economic future.
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