Details have emerged that Nigeria’s next president will be burdened with over N24.7 trillion in debt service in his or her first three years in office, amid politicking over who will be the country’s next president.
The sum exceeds the N19.97 trillion revenue generated by President Muhammadu Buhari’s administration during his first three years in office (2015-2018).
The debt servicing plan is contained in the FGN 2023 Budget Call Circular, which Ripples Nigeria obtained on Thursday.
The federal government of Nigeria, according to the document, plans to spend N10.4 trillion on debt servicing by 2025 as more loans mature.
Except for 2021 and 2022, the FG’s projected debt service expenditure in 2025 exceeds the total budget size of previous years since Nigeria’s independence.
In the Budget circular for 2023, the FG also projects that debt servicing will cost at least N6.31 trillion.
According to the federal government, debt service amounts to N3.295 trillion for domestic debt, N1.20 trillion for service on ways and means, and N1.814 trillion for foreign debt. In addition, N292.7 billion has been set aside for the Sinking Fund to retire maturing loans.
Another N8.06 trillion is expected to be spent on debt servicing in 2024, bringing the total projected figure to N24.7 trillion in three years.
Nigeria is already planning to spend close to N5 trillion on debt service this year.
According to Mrs Zainab Ahmed, Minister of Finance, Budget, and National Planning, N1.94 trillion was paid to creditors in the first three months of 2022.
This is N310 billion more than the federal government’s actual revenue during the same period
When she made the announcement, she hinted at additional payments in the coming months.