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Nigeria Budgets $29 Billion for 2020; 24% is for Debt Servicing

This is the summary here: the 2020 Nigeria budget is about $29 billion depending on the exchange rate of choice. If you use the official exchange rate ($1 for N310), it moves to $33.3 billion. The biggest challenge is that Nigeria spends 24% of its budget to service debts. That number has to come down; we need growth to generate revenue to pay down the debts even before maturity.

33. An aggregate expenditure of N10.33 trillion is proposed for the Federal Government in 2020. The expenditure estimate includes statutory transfers of N556.7 billion, non-debt recurrent expenditure of N4.88 trillion and N2.14 trillion of capital expenditure (excluding the capital component of statutory transfers). Debt service is estimated at N2.45 trillion, and provision for Sinking Fund to retire maturing bonds issued to local contractors is N296 billion.

Here is the one-page highlight from PwC.

 

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We just have to make Nigeria very competitive, and reward citizens based on their contributions in terms of productivity; what we are currently running cannot take us out of our present quagmire.

If it takes a president to announce that beginning from next month, to earn your salary as a federal government employee, you must be enrolled in IPPIS; you now begin to wonder how many people that have been drawing salaries who don't actually exist, including those who collect double. The kind of scam we perpetrate here in the name of governance and civil service are beyond belief.

To develop Nigeria requires a lot of work, and it starts by making sure that people work to earn a living, not hand-outs or free money.

"We just have to make Nigeria very competitive, and reward citizens based on their contributions in terms of productivity" - she ki nah, that is the summary! Until we push for productivity, Nigeria will struggle to rise.