Nigeria’s expenditure on debt servicing in the first nine months of 2023 soared to ₦5.78 trillion, overshooting the budget’s projection by nearly ₦870 billion, as detailed in the latest report from the Budget Office of the Federation.
According to the 2023 third-quarter budget implementation report released on Monday, the actual spending on debt servicing outpaced the prorated projection of ₦4.91 trillion stated in the 2023 budget by 17.68 percent.
The report outlined substantial expenditures across various debt servicing areas: ₦2.9 trillion was allocated to domestic debt servicing, surpassing projections by ₦430.27 billion.
External debt servicing costs amounted to ₦1.19 trillion during the same period.
The government’s spending on interest for ways and means reached a notable N1.69 trillion. Meanwhile, out of ₦1.23 trillion released for capital projects and programs to various ministries, departments, and agencies (MDAs), only ₦962.84 billion was utilized as of September 30, 2023, marking a utilization rate of 78.56 percent.
The fiscal deficit from January to September 2023 was reported at ₦4.4 trillion, considerably below the anticipated ₦8.7 trillion, marking a decrease from the ₦5.99 trillion deficit recorded over the same period in 2022.
The deficit financing primarily came through domestic borrowings totaling ₦3.43 trillion, reflecting a shortfall in net financing of about ₦979.49 billion for the period reviewed.
The Nigerian economy witnessed a growth of 2.54 percent in the third quarter of 2023. The Budget Office credited this performance to strategic measures addressing the adverse impacts of external shocks and local challenges like crude oil theft.
Factors contributing to this positive outcome include the global economic recovery, increased demand and prices for crude oil, and various government incentives.
The Budget Office remains optimistic about Nigeria’s economic trajectory, projecting continued growth into the fourth quarter of 2023 and beyond, supported by ongoing governmental efforts to stabilize and stimulate the economy.
