The Federal Government of Nigeria has reportedly spent N1.57trillion on debt servicing in the first half of the year.
This was revealed by Clement Agba, the Minister of State for Budget and National Planning.
Agba in a statement through his aide, Ojeifo Sufuyan, in Abuja noted that out of the government total expenditure, N1.57trillion was for debt servicing, and N1.61trillion for personnel cost (including pension).
He further revealed that N9.97trillion was appropriated.
The minister noted that Nigeria was cutting its crude oil production by about 300,000 barrels daily according to the agreement reached by members of the Organisation of Petroleum Exporting Countries and its allies.
“Crude oil prices declined sharply in the world market, with Bonny Light crude oil price dropping from a peak of $72.2 per barrel on January 7, 2020 to below $20 per barrel in April 2020.
“In effect, the $57 crude oil price benchmark on which the 2020 budget was based became unsustainable.
“Another key development in the international crude oil market is the massive output cut by OPEC and its allies (OPEC+) to stabilise the world oil market, with Nigeria contributing about 300,000 barrels per day of production cuts.”
“The impact of these developments is about 65 per cent decline in projected net 2020 government revenues from the oil and gas sector, with adverse consequences for foreign exchange inflows into the economy,” the Finance Minister said.
He further revealed that as of January to June 2020, the Federal Government’s retained revenue was N1.81trillion.
Oil revenue was N859.1billion, while non-oil tax revenues was N581.23billion.
“Companies Income Tax and Value Added Tax collections were N301.06bn and N85.4bn, representing 73 per cent and 60 per cent respectively of the pro data revised targets for the period.
“Customs collections was N184.36bn (82 per cent of revised target), while other revenues amounted to N372.04bn, a lowly 28 per cent of target,” Agba said.
He however noted that the NLNG dividends, recoveries and stamp duty collected in the first-half, had not been booked in the fiscal accounts.
Princess Ada is a Senior Content Creator and Head of Field Reporters at Naija Buzz News. She is a graduate of The Federal Polytechnic Nasarawa, Nasarawa State, where she studied Accounting before joining the media industry. She’s well experienced in Nigeria’s online media space. Ada previously worked as the Head of Business Operations at 1Push.Ng. She is a proud Igbo from Enugu State, South-East Nigeria.