Federal Government has earmarked N6.55 trillion for debt servicing in 2023 according to the Appropriation Bill passed by the National Assembly on Wednesday.
The Senate and the House of Representatives in Abuja approved the N21.82 trillion budget as the aggregate expenditure of the fiscal year.
The initial bill was N20.1 trillion but was raised by N1.31 trillion to the tune of N21, 827,188,747, 391.
Nigeria’s public debt hit N44.6 trillion in the third quarter of this year (Q3 in 2022) which represents a 2.9% quarter-on-quarter decline when compared to N42.84 trillion recorded in Q2 in 2022.
The Debt Management Office (DMO) released the figures in a press release on December 9, 2022.
According to DMO, the surge in the debt profile was a result of new borrowings by the FG to part-finance the deficit in the 2022 Appropriation Act, including borrowings by sub-nationals.
Meanwhile, the new budget voted N6.55 trillion to service the debt next year as the country expects a new government by 29th May, 2023, to chart a new economic blueprint that would address the massive debt.
Also, the budget is to use N8.32 trillion for recurrent (non-debt) expenditure while the sum of N5.97 trillion was for capital expenditure for the year ending 31st day of December 2023.
Meanwhile, the budget deficit which stands at N10, 782, 078, 435, 531 is expected to be funded through borrowing.