Nigeria spends N1.1trn on debt servicing in 9 months

ABUJA—A whopping sum of N1.094.22
trillion was expended by the Federal
Government on debt servicing between
January and September 2016.
While N1.044 trillion was used to service
local debt, against the N980.55 billion
budgeted in the 2016 spending plan,
representing N63.45 billion, the sum of
N50.22 billion was spent for external debt
servicing, marking N9.36 billion increase
from the N40.86 billion budgeted.
This was according to 2016 draft on budget
implementation and performance monitoring
report for the third quarter presented
yesterday by the Minister of State for
Budget and National Planning, Zainab
Ahmed, at an event titled “Promoting
Effective Policy Monitoring and Evaluating
and Performance of Ministers, Department
and Agencies in the implementation of the
2016 Budget of Change” in Abuja.
According to the Minister, “the increase in
the external debt stock in the third quarter
of 2016 was due largely to the rise in Non-
Paris Club Bilateral Debts draw down.”
It will be recalled that some factors such as
the crash of oil prices in the International
market, crude oil theft, illegal bunkering and
militancy in the oil-rich Niger Delta affected
the earnings of the country.
The minister said net oil receipt dropped by
66.6 percent to N2012.37 billion in the third
quarter of 2016, against N603.53 billon.
However, non oil revenue improved by 9.47
percent to N777.37billion from
N709.96billion same quarter last year.
She added that in 2016, government largely
borrowed from domestic sources to fund
capital projects.
Ahmed, however, said a net sum of N987.17
billion was available for distribution among
the three tiers of government in the third
quarter, with a 30 .96 percent shortfall of
N442.73billion.
Meanwhile, sequel to the crash of global oil
prices and short supply of the product, no
transfers were made to the Excess Crude
Account (ECA) in the first two quarters of
the year.
But with a rise in crude oil prices,
N145.48billion was transferred to the
account in the third quarter.
Ahmed said a total of N85. 17 billion was
withdrawn from the ECA for distribution
among the three tiers of government within
the quarter, leaving a balance of
$2.89billion balance as at September 20.
The 2016 budget had a total appropriation
of N6.06trillion with recurrent (Non Debt )