Nigeria’s Federal Government recorded a staggering deficit of N13.50 trillion in 2023, according to the Fiscal Accounts Report released by the Accountant General of the Federation. The report revealed that the government’s spending exceeded its revenue by more than three times, raising concerns about the country’s fiscal sustainability.
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The report shows that the Federal Government generated N5.99 trillion in revenue but spent N19.50 trillion, resulting in a deficit equal to 225% of the total revenue. The revenue sources included N3.80 trillion from the Federation Account Allocation Committee (FAAC), N1.98 trillion from the Federal Government’s independent revenue, N2.39 trillion from the Federation Account, N715.75 billion from exchange rate differences, and N441.87 billion from Value Added Tax (VAT).
A significant portion of the expenditure, 43.9%, amounting to N8.56 trillion, was allocated to debt servicing, making it the largest single expense in the budget. Non-debt spending accounted for 27.8% or N5.42 trillion, while capital expenditure comprised 23% of the budget at N4.49 trillion.
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The report highlights the Federal Government’s growing reliance on borrowing to finance its operations, as debt servicing alone exceeded the total revenue generated. This unsustainable fiscal trend underscores the government’s drift away from financial responsibility, raising alarms about the country’s long-term economic health.
