In 2015, the Budget was N4.5Trillion
In 2022, it is N17.13Trillion (nearly 400% increase).
[Inflation rate 15.5%, Forex rate increase 200% between 2015 to 2022].
What happened to the Nigerian PROVERB, “Cut your Coat according to your size”?
DID YOU KNOW THAT.
1) Nigeria is faced with a huge revenue shortfall challenge?
2) Debt, domestic and International is at all time high?
3) Shortfall in the 2022 Budget will be funded by
a) more new borrowings,
b) Govt assets and Investments being sold to individuals.
c) special loans tied to Projects and assets.
d) increase in tax on goods & services.
e) custom duties will be increased again.
4) N3.61tn will be used to service Debt in 2022 and they are borrowing more.
This is about double the budget of the 36 states join together.
Nigeria don’t need a budget of N17.13trn considering the falling revenue from all sectors.
The economy can’t survive the ever-increasing debt profile of Nigeria.
By December 2022, it is projected that Total debt figure will increase from N12trn in 2015 to about N58trn.
The domestic debt is at all time high and it is certain that greater portion of these debts are as a result of over-Invoicing (project cost padding).
The above implies that the next 2-3 generation of Nigerians will be paying back bogus debts ‘owed’ to some vested interest including contractors and Govt allies.
Nigeria has never experienced this level of looting, insensitivity and irresponsibility by those charged with governance rubber-stamped by the National Assembly.