TRIBUNE
Despite the bloated recurrent spending in the 2024 budget and a significant infrastructure gap, Nigeria’s debt repayment now exceeds both recurrent and capital expenditure.
This is alongside the country’s foreign direct investment (FDI) being at an all-time low of under US$1 billion.
Mr Tilewa Adebajo, Chief Executive Officer (CEO) of The CFG Advisory, disclosed this while speaking on the topic “Nigeria’s Fiscal Environment in an Era of Monetary Policy Tightening” at the July 2024 edition of the Finance Correspondents Association of Nigeria (FICAN) bi-monthly forum in Lagos.
Although N8.7 trillion was earmarked for capital expenditure in the 2024 budget, infrastructure development will receive just N1.32 trillion of this.
According to Adebajo, Nigeria’s current debt burden of US$130 billion is being serviced by 95 per cent of revenues, as debt repayment now exceeds both recurrent and capital expenditure.
Nigeria’s public debt stock rose from N97.34 trillion in December 2023 to N121.67 trillion in March 2024, according to the Debt Management Office (DMO).
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