FG incurs N36.8trn deficit under Buhari – Records N32trn revenue, spends N68tn

• Analysis of Central Bank of Nigeria data reveals that Nigeria’s federal government incurred a deficit spending of N36.8 trillion during President Buhari’s eight-year administration.

• The deficit spending peaked in the last four years, from 2019 to 2022, accounting for 77% of the total deficit.

• Fuel subsidy spending and increased borrowing contributed to the rising deficit, with national debt stock soaring by 267% to N46.25 trillion in 2022.

Analysis reveals that Nigeria’s federal government accumulated a deficit spending of N36.8 trillion during President Buhari’s eight-year administration.
The deficit spiked in the last four years, accounting for 77% of the total deficit, with total revenue at N32.05 trillion and total expenditure at N68.8 trillion.
Fuel subsidy spending and increased borrowing contributed to the rising deficit, with national debt stock increasing by 267% to N46.25 trillion in 2022.
Rewritten Article:

Nigeria’s Deficit Surpasses N36.8 Trillion during President Buhari’s Administration

An analysis of Central Bank of Nigeria data has unveiled that Nigeria’s federal government accumulated a staggering deficit spending of N36.8 trillion throughout President Muhammadu Buhari’s eight-year administration, spanning from 2015 to 2022. The examination also revealed that a significant portion of this deficit, 77%, was amassed in the last four years, from 2019 to 2022.

During the eight-year period, total revenue stood at N32.05 trillion, while total expenditure amounted to N68.8 trillion, indicating a deficit spending of N36.8 trillion. In the initial four years, from 2015 to 2018, revenue amounted to N13.9 trillion, whereas expenditure reached N24.3 trillion, resulting in a deficit spending of N10.4 trillion.

The deficit spending experienced a substantial surge of 60% during the subsequent four years, from 2019 to 2022. Comparing this period with the preceding four years, revenue witnessed a 31% increase, reaching N18.2 trillion, while expenditure rose by 83% to N44.5 trillion. Consequently, the deficit spending escalated to N26.4 trillion, reflecting a 60% surge compared to the previous four years.

Intriguingly, a detailed analysis of the eight-year deficit spending highlights that over 22% of it was incurred in 2022 alone. Throughout that year, the Federal Government’s revenue recorded a 14.7% growth, amounting to N5.05 trillion compared to N4.4 trillion in 2021. Meanwhile, expenditure in 2022 reached N13.4 trillion, reflecting a 14.5% increase from N11.7 trillion in 2021. As a result, the government faced a deficit spending of N8.3 trillion, indicating a 13.6% rise compared to N7.3 trillion in 2021.

Fuel Subsidy

A major factor contributing to the spike in deficit spending is the steady and sharp increase in fuel subsidy spending, which amounted to N9.34 trillion between 2015 and 2022. Vanguard’s analysis revealed that annual fuel subsidy spending skyrocketed by 571%, from N654 billion in 2015 to N4.39 trillion in 2022.

National Debt Rises by 267%

Given that the N36.8 trillion deficit incurred over the eight-year period was financed through borrowing, the total debt stock witnessed a sharp increase of 267% or N33.65 trillion. According to data from the Debt Management Office (DMO), the national debt stock reached N46.25 trillion in 2022, compared to N12.6 trillion in 2015. Notably, this figure excludes the N23 trillion borrowed from the Central Bank of Nigeria as “Ways and Means.”