A new report by the accountability firm BudgIT has revealed a deepening fiscal crisis in Nigeria. The Federal Government’s spending in 2023 exceeded its revenue by a staggering 225%, resulting in a deficit of N13.50 trillion.
According to the report, the government’s revenue last year amounted to N5.99 trillion, while its expenditure reached N19.50 trillion. This significant overspending is a cause for concern, as it indicates a continued drift away from fiscal responsibility and a growing reliance on borrowing.
Experts have warned that the government’s excessive spending habits are unsustainable and could lead to severe economic implications. Victor Agi, a fiscal accountability expert at the Centre for Fiscal Transparency and Integrity Watch, sounded the alarm on Nigeria’s escalating debt crisis, stating, “The economy is bleeding and we are struggling to fund capital expenditure.”
Agi criticised the government’s handling of the economy, noting that Nigeria has experienced no economic growth since 2014 and is now facing the threat of negative growth. He expressed concern over the government’s borrowing habits, stating, “The problem is not the fact that the government is borrowing, but what are we borrowing for? We are borrowing to fund debt, to fund frivolities.”
The report also highlighted the government’s failure to prioritise essential spending. Only 4.4% of the government’s N19 trillion expenditure last year was allocated to capital expenditure, a figure that experts deem unacceptable. This lack of investment in critical areas such as infrastructure and education is contributing to the country’s economic woes.
Public policy enthusiasts have echoed these concerns, warning that Nigeria’s economic situation could worsen if the government does not take immediate action to address its spending habits and prioritise essential expenditures. They have called for greater fiscal responsibility and a focus on stimulating local investment to drive economic growth and development.