The debt servicing to revenue of Nigeria dropped to 86.98% by half-year 2021 from 97.78% in 2020.
Total revenue available for the Federal Government (FG) by the first half of 2021 amounted to N2.32 trillion. Within the same period, the FG spent N2.02 trillion servicing its debts.
Debt servicing burden means that few funds are left to meet other liabilities of the FG, which resulted in more borrowing to finance expenditure as up to 38% of the 2022 budget is financed by loans.