A recent report by an accountability firm has unveiled that in 2023, the Federal Government spent three times more than its revenue, resulting in a deficit of N13.50tn.
The analysis of the 2023 fiscal accounts from the Office of the Accountant-General of the Federation indicated that the government’s revenue for the year was N5.99tn, while its total expenditure stood at N19.50tn, surpassing its income by 225%.
The revenue was sourced from various channels, including N3.80tn from the Federation Account Allocation Committee, N1.98tn from the Federal Government’s independent revenue, and N202.54bn from other streams.
This deficit underscores the government’s departure from fiscal responsibility, as it continues to borrow more than it earns, perpetuating a cycle of debt and financial instability.
In response to this revelation, a fiscal accountability expert raised concerns about Nigeria’s escalating debt crisis, warning of severe economic repercussions if immediate action is not taken.
The expert emphasized the need for fiscal responsibility, urging the government to prioritize funding for the real sector of the economy and capital expenditure to navigate the current economic challenges.
Another public policy enthusiast expressed worries about the government’s spending patterns, cautioning that the country’s economic challenges could worsen if not addressed promptly.
He also stressed the importance of local investment to stimulate economic growth and development, pointing out that most expenditures currently do not directly impact the local economy.