By Seun Ibiyemi
The Federal Government spent a staggering N8.93 trillion on debt servicing between January and September 2024, accounting for 61 percent of the total revenue earned within the period, according to the latest budget implementation report.
This figure exceeded the projected N6.03 trillion earmarked for debt servicing for the nine-month period, underscoring the escalating strain on public finances.
A closer examination of the quarterly figures shows that debt servicing rose steadily throughout the year. In the first quarter, the government spent N2.26 trillion, followed by N3.77 trillion in the second quarter and N2.89 trillion in the third, each surpassing the N2.01 trillion allocated per quarter.
Revenue performance during the same period remained underwhelming. The government recorded a total income of N14.55 trillion, falling short of the N19.4 trillion initially projected. On a quarterly basis, revenue stood at N3.58 trillion in Q1, N4.88 trillion in Q2, and N6.08 trillion in Q3, all consistently below the N6.46 trillion benchmark set per quarter.
Despite the overall revenue gap, non-oil revenue outperformed expectations. It brought in N3.65 trillion, surpassing both the N2.67 trillion target for the first nine months and the N3.56 trillion anticipated for the entire year. Non-oil earnings were recorded at N985.07 billion in Q1, N1.30 trillion in Q2, and N1.35 trillion in Q3.
Conversely, oil revenue failed to meet expectations, generating just N4.63 trillion, significantly below the N6.13 trillion projected for the January–September window. The quarterly figures for oil revenue were N1.39 trillion in Q1, N1.32 trillion in Q2, and N1.92 trillion in Q3, all trailing the N2.04 trillion quarterly target.
The report draws attention to the mounting fiscal pressure facing the government, as a substantial portion of available revenue is absorbed by debt obligations, leaving limited fiscal space for other critical sectors, despite the encouraging performance in non-oil revenue.