How Nigeria Spent N19 Trillion in 2023 But Generated N5.9 Trillion Revenue 

In 2023, Nigeria found itself in a tight financial situation. According to BudgIT, a civic-tech non-profit organisation, says the federal government spent more than three times what it earned in revenue in 2023.

The country earned N5.99 trillion in revenue but spent a staggering N19.50 trillion and recorded a deficit of N13.50 trillion — 225 percent of the total revenue.

This means Nigeria spent over three times what it brought in, leading to a massive budget deficit of N13.50 trillion.

Where did this money come from and how was it spent? 

The bulk of the revenue, about N3.80 trillion, was from the Federation Account Allocation Committee (FAAC). Additionally, the government managed to collect N1.98 trillion from its independent sources. 

Other notable contributions included N2.39 trillion from the government’s share of the federation account, N715.75 billion from exchange rate differences and N441.87 billion from value-added tax (VAT).

Spending-wise, the largest chunk of the budget went to debt servicing, which consumed 43.9% of the total budget at N8.56 trillion. 

That’s nearly half of all government expenditure directed to paying off debts! Non-debt-related expenses accounted for 27.8% of the budget, totaling N5.42 trillion, while investments in infrastructure and other capital projects represented 23% at N4.49 trillion.

The critical takeaway here is the proportion of spending on debt servicing—surpassing the total revenue generated. This shows that the government is borrowing extensively more than it earns, deepening the deficit and steering further from fiscal responsibility. 

As BudgIT points out, this trajectory is unsustainable and puts the country in a precarious fiscal position.