A new report by BudgIT has revealed that the Nigerian government spent three times more than it earned in 2023, resulting in a massive deficit of N13.50 trillion. This alarming figure highlights the government’s continued drift away from fiscal responsibility and raises concerns about the country’s economic stability.
The report analyzed the 2023 fiscal accounts and found that the government’s revenue for the year was N5.99 trillion, while spending reached N19.50 trillion. This significant overspending, amounting to 225% of revenue, is a cause for concern.
The government’s revenue came from various sources, including the Federation Account Allocation Committee (FAAC), independent revenue, and other sources. Despite this, the deficit remained substantial.
Experts have sounded the alarm on Nigeria’s escalating debt crisis, warning of severe economic implications if urgent action is not taken. Victor Agi, a fiscal accountability expert, criticized the government’s handling of the economy and warned of the dire consequences of continued irresponsible spending.
Agi noted that Nigeria has experienced no economic growth since 2014 and that the government’s borrowing habits are unsustainable. He emphasized the need for fiscal responsibility and called for the government to prioritize funding for the real sector of the economy and capital expenditure.
Another expert, Femi Oladele, expressed concerns about the government’s spending priorities. He questioned whether the government is relying on unknown “windfalls” to sustain its spending habits. Oladele criticized the government’s tendency to prioritize non-essential expenditures and urged for a focus on local investment to stimulate economic growth.
The report highlights the urgent need for the Nigerian government to address its fiscal deficit and adopt more responsible spending habits. Failure to do so could have severe consequences for the country’s economy and the well-being of its citizens.
