BudgIT Nigeria has revealed that for every N100 the Nigerian government made, N97 was spent on debt servicing, stating that debt servicing wiped off 97 per cent of the government’s total revenue.

The government’s total revenue in 2020 was N3.42 trillion, and N3.34 trillion was used to service debts, meaning that the government had to depend on loans to pay salaries.

This has highlighted the country’s current economic crisis.

William Ukpe, an analyst with Nairametrics, told FIJ, “Basically, if we don’t reduce expenses and increase productivity, the net effects of this would be felt  insecurity.

“Secondly, it means are are rapidly mortgaging the future, so the control the FG is worried about, they would have much less of it. We have a debt and revenue problem.”

BudgIT, a civic tech organisation that raises the standards of transparency and accountability, made this revelation in its 2020 budget implementation analysis made public on Friday.

“A critical highlight with non-debt recurrent expenditure is the actuals on Pensions. FG disbursed only N359bn of the N536bn budget for pension. This means that many pensioners didn’t get their pensions during the heat of COVID-19,” the report stated.