• Advertise
  • Opinion
  • Features & Interviews
  • Investigation
  • Contact
Sunday, September 24, 2023
  • Login
No Result
View All Result
NEWSLETTER
The Lagos Today
  • Home
  • News
    • Lagos News
    • National News
    • World News
  • Entertainment⚡ by CRAWL
    • All
    • Art & Design
    • Books
    • Movie
    • Music
    • Sports
    Tears as Nigerian Singer, Mohbad, is laid to rest in Lagos

    Mohbad’s Autopsy completed- Lagos Police

    Police exhumes Body of Mohbad for Autopsy

    Police exhumes Body of Mohbad for Autopsy

    Tears as Nigerian Singer, Mohbad, is laid to rest in Lagos

    Why we buried Mohbad quickly on his only land- Mohbad’s Father

    LASU Gets 13 New Governing Council Members

    Sanwo-Olu invites DSS to join Police investigation of Mohbad’s Death

    Tears as Nigerian Singer, Mohbad, is laid to rest in Lagos

    Lagos Police set up 13-Man Special Investigation Team to unravel Mohbad’s Death

    Former Super Falcons’ Captain, Oparanozie, retires from Professional Football

    Former Super Falcons’ Captain, Oparanozie, retires from Professional Football

    Tears as Nigerian Singer, Mohbad, is laid to rest in Lagos

    Tears as Nigerian Singer, Mohbad, is laid to rest in Lagos

    Onigbongbo ready to host 2023 Lagos Street Soccer Championship Finals- Chairman

    Onigbongbo ready to host 2023 Lagos Street Soccer Championship Finals- Chairman

    Fans lose hope over Indefinite Postponement of NPFL

    Fans lose hope over Indefinite Postponement of NPFL

    Rema’s Hit Single ‘Calm Down’ reaches 1bn Streams on Spotify

    Rema’s Hit Single ‘Calm Down’ reaches 1bn Streams on Spotify

  • Opinion
  • Business
  • Features & Interviews
  • Best Of Lagos
    Lagos welcomes The Art hotel: A flamboyant 5 star Business Boutique Hotel

    Lagos welcomes The Art hotel: A flamboyant 5 star Business Boutique Hotel

    THE LUXURY NETWORK NIGERIA ANNOUNCES NEW MEMBER, AFFINITY ART GALLERY

    THE LUXURY NETWORK NIGERIA ANNOUNCES NEW MEMBER, AFFINITY ART GALLERY

    THE LUXURY NETWORK NIGERIA HOSTS MEMBERS’ NETWORKING FORUM

    THE LUXURY NETWORK NIGERIA HOSTS MEMBERS’ NETWORKING FORUM

    Exploring Lagos’ Gastronomy With Chef Priyank Singh of Hard Rock Cafe

    Exploring Lagos’ Gastronomy With Chef Priyank Singh of Hard Rock Cafe

    Olu Oyinsan- Saying Yes To Founders At The Early Stage

    Olu Oyinsan- Saying Yes To Founders At The Early Stage

    A Rare Hobby: Sports Fishing In Lagos

    A Rare Hobby: Sports Fishing In Lagos

    Chef Nkesi- Experiencing Different Cultures Through Food

    Chef Nkesi- Experiencing Different Cultures Through Food

    Wumi Jubril: Creating Memorable Experiences

    Wumi Jubril: Creating Memorable Experiences

    Nordic hotel

    Nordic Hotel Makes Grand Debut in Lagos

  • Things To Do
  • Home
  • News
    • Lagos News
    • National News
    • World News
  • Entertainment⚡ by CRAWL
    • All
    • Art & Design
    • Books
    • Movie
    • Music
    • Sports
    Tears as Nigerian Singer, Mohbad, is laid to rest in Lagos

    Mohbad’s Autopsy completed- Lagos Police

    Police exhumes Body of Mohbad for Autopsy

    Police exhumes Body of Mohbad for Autopsy

    Tears as Nigerian Singer, Mohbad, is laid to rest in Lagos

    Why we buried Mohbad quickly on his only land- Mohbad’s Father

    LASU Gets 13 New Governing Council Members

    Sanwo-Olu invites DSS to join Police investigation of Mohbad’s Death

    Tears as Nigerian Singer, Mohbad, is laid to rest in Lagos

    Lagos Police set up 13-Man Special Investigation Team to unravel Mohbad’s Death

    Former Super Falcons’ Captain, Oparanozie, retires from Professional Football

    Former Super Falcons’ Captain, Oparanozie, retires from Professional Football

    Tears as Nigerian Singer, Mohbad, is laid to rest in Lagos

    Tears as Nigerian Singer, Mohbad, is laid to rest in Lagos

    Onigbongbo ready to host 2023 Lagos Street Soccer Championship Finals- Chairman

    Onigbongbo ready to host 2023 Lagos Street Soccer Championship Finals- Chairman

    Fans lose hope over Indefinite Postponement of NPFL

    Fans lose hope over Indefinite Postponement of NPFL

    Rema’s Hit Single ‘Calm Down’ reaches 1bn Streams on Spotify

    Rema’s Hit Single ‘Calm Down’ reaches 1bn Streams on Spotify

  • Opinion
  • Business
  • Features & Interviews
  • Best Of Lagos
    Lagos welcomes The Art hotel: A flamboyant 5 star Business Boutique Hotel

    Lagos welcomes The Art hotel: A flamboyant 5 star Business Boutique Hotel

    THE LUXURY NETWORK NIGERIA ANNOUNCES NEW MEMBER, AFFINITY ART GALLERY

    THE LUXURY NETWORK NIGERIA ANNOUNCES NEW MEMBER, AFFINITY ART GALLERY

    THE LUXURY NETWORK NIGERIA HOSTS MEMBERS’ NETWORKING FORUM

    THE LUXURY NETWORK NIGERIA HOSTS MEMBERS’ NETWORKING FORUM

    Exploring Lagos’ Gastronomy With Chef Priyank Singh of Hard Rock Cafe

    Exploring Lagos’ Gastronomy With Chef Priyank Singh of Hard Rock Cafe

    Olu Oyinsan- Saying Yes To Founders At The Early Stage

    Olu Oyinsan- Saying Yes To Founders At The Early Stage

    A Rare Hobby: Sports Fishing In Lagos

    A Rare Hobby: Sports Fishing In Lagos

    Chef Nkesi- Experiencing Different Cultures Through Food

    Chef Nkesi- Experiencing Different Cultures Through Food

    Wumi Jubril: Creating Memorable Experiences

    Wumi Jubril: Creating Memorable Experiences

    Nordic hotel

    Nordic Hotel Makes Grand Debut in Lagos

  • Things To Do
No Result
View All Result
The Lagos Today
No Result
View All Result
Home Business

FG projects 82% of revenue for debt servicing – Report

by Idonosan Debe
February 13, 2023
in Business
4 min read
0
0
Nigeria benefits from IMF’s $23bn COVID-19 relief
Share on FacebookShare on Twitter

The International Monetary Fund says the Federal Government has projected to spend 82 per cent of its revenue on interest payments in 2023.

According to the IMF, external debt (including that of the private sector) will rise to $121.6bn, with external reserves climbing to $37.5bn.

It disclosed this in a table of projections in its ‘IMF Executive Board Concludes 2022 Article IV Consultation with Nigeria summary’.

The projections showed an improvement in the share of the government’s revenue that was been used as interest payment, with interest payment falling from 96.3 per cent in 2022 to 82 per cent in 2023.

It added that interest payment was 86.1 per cent and 87.8 per cent of the Federal Government’s revenue in 2020 and 2021 respectively.

The Washington-based lender further stated that Nigeria was at a near-term downside risk of high debt-servicing costs.

It said, “Directors welcomed the broadening of Nigeria’s economic recovery but noted that the opportunity to reap the benefits from higher global oil prices was missed.

“They underscored near-term downside risks arising from elevated inflation, high debt-servicing costs, external sector pressures, and oil sector volatility.

“Looking ahead, Directors recommended decisive fiscal and monetary tightening to secure macroeconomic stability, combined with structural reforms to improve governance, strengthen the agricultural sector, and boost inclusive, sustainable growth.”

According to the budget office, the Federal Government’s retained revenue was N6.5tn from January to November 2022, of which N5.24tn (80.62 per cent) was used for debt servicing.

In 2022, the IMF’s Resident Representative for Nigeria, Ari Aisen, stated that debt servicing might gulp 100 per cent of the government’s revenue by 2026. He added that interest payments on debts may wipe up the country’s entire earnings in the next four years.

He said, “The biggest critical aspect for Nigeria is that we have done a macro-fiscal stress test, and what you observe is the interest payments as a share of revenue and as you see us in terms of the baseline from the federal government of Nigeria, the revenue almost 100 per cent is projected by 2026 to be taken by debt service.

“So, the fiscal space or the amount of revenues that will be needed and this without considering any shock is that most of the revenues of the federal government are now, in fact, 89 per cent and it will continue if nothing is done to be taken by debt service.

“It is a reflection of the low revenue of the country. The country needs to mobilise more revenue to be able to have macroeconomic stability. It has become an existential issue for Nigeria.”

According to the World Bank, interest payments on the Federal Government borrowing from the Central Bank of Nigeria will cost 62 per cent of revenue by 2027.

The Director General of the Debt Management Office, Patience Oniha, recently stated that high debt servicing cost was affecting investments in infrastructure.

She said, “High debt levels lead to heavy debt service which reduces resources available for investment in infrastructure and key sectors of the economy.”

According to the Minister of Finance, Budget and National Planning, Zainab Ahmed, the Federal Government plans to cut its debt to revenue ratio to 60 per cent in 2023.

While speaking at in an interview with Bloomberg TV at the World Economic Forum in Davos, Switzerland, she said the government is sustainable in its debt trajectory.

She stated, “We are sustainable in our debt trajectory. We have made our plan to make sure we are able to consistently service our debts. And by the way, we are also exiting fuel subsidy which is a huge cost.

“I am part of the contributors to where we are in terms of the debt stock. So, once we pull the fuel subsidy out, production of crude oil increases, and then we sustain the improvement we have, put in place in terms of nonoil revenue, then we should be able to come down to 60 per cent to debt to revenue ratio.”

She added that the government was in the process of converting its Ways and Means loans into a 40-year bond to provide fiscal relief and reduce its debt servicing cost.

According to DMO, the country’s public debt hit N44.06tn in the third quarter of 2022.

Follow us on social media
  • Facebook
  • Twitter
  • Instagram
Tags: DebtDebt servicingFederal Government of NigeriaInternational Monetary FundNigerian EconomyRevenue
Previous Post

Suspected Cultists Gang-rape Rivers Pastor’s Wife To Death

Next Post

Courts Reject Old Naira Notes, Turn Lawyers, Litigants Back In Lagos

Idonosan Debe

Idonosan Debe

Related Posts

Fuel Hits N250/litre In Abuja, Lagos As  Queues Spread

Infrastructure Bank to provide N13bn to mitigate effects of Subsidy Removal

by Rosemary Opara
September 23, 2023
0

Financial assistance to the tune of N13 billion will be provided by the Infrastructure Bank to mitigate the consequences of...

COVID-19: AFDB approves Nigeria’s $288.5m Loan

AfDB, Google partner to transform Africa’s $115bn Digital Economy

by Idonosan Debe
September 23, 2023
0

...forecast $712bn by 2050 Google and the African Development Bank (AfDB) have deepened their partnership to advance Africa’s burgeoning digital...

Next Post
Naira Gains Across Forex Markets Amid CBN Intervention

Courts Reject Old Naira Notes, Turn Lawyers, Litigants Back In Lagos

Please login to join discussion

Recommended

#EndSARS: Council Chair Bans Okada, Danfo Buses in Lagos’ Ajeromi-Ifelodun Community

LASG Impounds Motorcycles at Lekki Axis

2 years ago
New Cab Hailing Service, Lagos Ride, Begins Operations With 1,000 SUVs

New Cab Hailing Service, Lagos Ride, Begins Operations With 1,000 SUVs

3 years ago

Popular News

    Newsletter

    Connect with us

    Tags

    #EndSARS 2023 Elections 2023 polls 2023 Presidency ACCIDENT Africa All progressives Congress APC Asiwaju Bola Tinubu Babajide Sanwo-Olu Bitcoin CBN Central Bank of NIgeria Central Bank of Nigeria (CBN) China Coronavirus pandemic Covid-19 Covid-19 in Lagos Covid-19 in Nigeria Covid-19 Vaccine Cryptocurrency Drug Trafficking EFCC Federal Government Federal Government of Nigeria Fraud Godwin Emefiele Gov. Sanwo-Olu Insecurity Lagos-Ibadan expressway Lagos state Lagos State Government Lagos State House of Assembly Lagos State Police command Muhammadu Buhari Murder Murtala Muhammed International Airport Naira NDLEA New naira notes Nigeria Rape Strike action United states US

    News

    • Business
    • National
    • Politics
    • Tech

    Opinion

    • Editorials
    • Today’s Opinion
    • Letters
    • Sunday Review
    • Advertise
    • Opinion
    • Features & Interviews
    • Investigation
    • Contact

    © 2020 The Lagos Today - Nkali.

    No Result
    View All Result
    • Home
    • News
      • Lagos News
      • National News
      • World News
    • Entertainment
    • Opinion
    • Business
    • Features & Interviews
    • Best Of Lagos
    • Things To Do

    © 2020 The Lagos Today - Nkali.

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Create New Account!

    Fill the forms bellow to register

    All fields are required. Log In

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In