The Federal Government is projected to spend N7.76 trillion in 2023 on various expenses, including salaries for federal workers and other non-debt recurrent costs.
The data is based on the initial 2023 budget and the recently signed 2023 supplementary budget.
The central government has approved a N2.18 trillion budget to cover new expenses, such as the agreed wage reward for workers following the removal of fuel subsidy.
According The PUNCH, the Minister of Budget and Economic Planning, Abubakar Bagudu, highlighted that a portion of the budget will be allocated for national defense, wage awards, and infrastructure projects.
Specifically, N605 billion has been earmarked for national defense and security, N210 billion will cover the payment of wage awards, and N300 billion will be used for bridge repairs and road construction and maintenance.
He said “Equally a sum of N300bn was provided to repair bridges, including Eko and Third Mainland bridges, as well as construction, rehabilitation, and maintenance of many roads nationwide before the return of the rainy season.
“The sum of N210bn was provided for the payment of wage Awards. In negotiation with the Nigeria Labour Congress, the federal government agreed to pay N35,000 each to about 1.5 million employees of the Federal Government and that covers September, October, November, and December 2023.”
A significant portion of the budget, N1.01 trillion, is allocated for recurrent expenditure, while N1.17 trillion is dedicated to capital expenditure. The supplementary budget will increase the total non-debt recurrent expenditure to N7.76 trillion and capital expenditure to N4.53 trillion, resulting in a total budget of N19.81 trillion for 2023.
The government is facing challenges with rising expenditure costs amid declining revenues.
The Accountant General of the Federation, Mrs. Oluwatoyin Madein, expressed concerns over dwindling revenue generation compared to escalating government expenditure. Nigeria’s revenue crisis is attributed to falling oil production and the limited diversification of the economy, posing a significant fiscal constraint for the federation.
