Nigerian govt returns CBN’s N1.11trn, as debt servicing gulps 98% of 9-month revenue

The administration of President Buhari has paid back N1.11 trillion loan collected from the Central Bank of Nigeria (CBN) to run the country.

CBN provides support to the FG in the form of Ways and Means, a provision in the CBN act that allows the government to borrow from the Apex Bank.

The Minister for Finance Zainab Ahmed disclosed this during a public presentation of the 2022 FGN Approved Budget.

According to her, the amount paid to CBN was part of the total N4.20 trillion spent on debt service.

In the breakdown seen by Ripples Nigeria, from January to November N2.20 trillion of the debts service was on Domestic Debt, while another N885 billion was for foreign debts and sinking fund gulped N600,000.

Debt gulps 97.5% of revenue

Meanwhile Nigeria has committed 97.5% of its retained revenue to debt servicing.

Read also: Nigeria hub of stolen vehicles -Finance Minister, Zainab Ahmed

Ahmed’s presentation showed that in the 9 months of 2021, Nigerian government retained revenue was N4.30 trillion out of which N4.20 trillion went into debt service.

Retained revenue are income after deductions have been made.

However, Ahmed revealed FG’s aggregate revenue in the nine months period was N5.50 trillion

Oil generated N970.3 billion while non-oil revenue totaled N1.62 trillion.

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