The Office of the Minister of Finance, Budget and National Planning has revealed that money spent servicing debt surpassed the total revenue generated by the Federal Government of Nigeria in the first quarter of 2022.

This is part of the fiscal performance report for January to April 2022 presented by Zainab Shamsuna Ahmed, the Minister of Finance, Budget and National Planning, on Thursday.

The document reveals that the cost of servicing debt surpassed the federal government’s revenue by N310 billion within the period under consideration. The total revenue generated in the first quarter of 2022 was N1.63 trillion, while debt servicing consumed N1.94 trillion within the same period.

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“The gross oil and gas federation revenue for full year 2022 was projected at N9.37 trillion. As at April 30, 2022, N1.23 trillion was realised out of the prorata projection of N3.12 trillion, representing a mere 39% performance,” the document reads in part.

“Despite higher oil prices, oil revenue underperformed due to significant oil production shortfalls.

Ahmed reported that the federal government’s share of oil revenues was N285.38 billion, while non-oil tax revenues totalled N632.56 billion. The federal government also generated N401.8 billion from company income tax (CIT) and value-added tax (VAT).

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“CIT and VAT collections were N298.83 billion and N102.97 billion, representing 99 percent and 98 percent of their respective targets,” the document reads.

“Customs collections (made up of import duties, excise and fees, as well as federation account special levies) trailed target by N76.77 billion (25.42 percent).

“Other revenues amounted to N664.64 billion, of which independent revenue was N394.09 billion.”

The report notes that fiscal risks are somewhat elevated and revenue generation remains Nigeria’s major fiscal constraint. The report states that crude oil theft, pipeline vandalism and petrol subsidy deductions were ‘significant threats’ to the achievement of government’s revenue growth targets in the first quarter of 2022.

“Efforts will however focus on improving tax administration and collection efficiency,” the ministry states.

“Bold, decisive and urgent action is urgently required to address revenue underperformance and expenditure efficiency at national and sub-national levels.”