‘Debt servicing gulped 61% of FG’s revenue from Jan-Sept 2024’
The Federal Government has said that state governments now have more money to operate following the removal of the petrol subsidy by Bola Tinubu’s administration in May 2023.

Minister of Finance and Coordinating Minister of the Economy, Wale Edun, revealed this at the National Health Financing Dialogue in Abuja, yesterday.

According to him, although the removal of fuel subsidy by Tinubu was a tough decision, the move has, however, paid off.

He said that the fuel subsidy was benefiting only a few and even foreigners, and gulping about 2.5 per cent of the GDP, adding: “The opportunity cost of the fuel subsidy was that there wasn’t enough money for investments in healthcare, education and other sectors.

He said that the reforms were meant to build a competitive economy for every sector and for investors to thrive.

However, a budget implementation report has revealed that the Federal Government spent N8.93 trillion on debt servicing from January to September 2024.

This represents 61 per cent of N14.55 trillion revenues generated in the period.

A breakdown of the amount, according to the report, showed that debt servicing gulped N2.26 trillion in the first quarter, N3.77 trillion in the second quarter and N2.89 trillion in the third quarter. These are higher than N2.01 trillion budgeted for each quarter.

Also, the N8.93 trillion is higher than N6.03 trillion expected to be spent on debt servicing for the period (January to September).

An analysis of the total N14.55 trillion revenue generated in the period shows a shortfall from the expected aggregate revenue in the period, which stood at N19.4 trillion.

On a quarterly basis, a total of N3.58 trillion was generated in the first quarter, N4.88 trillion and N6.08 trillion in the second and third quarters, respectively. This is below the N6.46 trillion expected in each quarter.