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" - she ki nah, that is the summary! Until we push for productivity, Nigeria will struggle to rise.
