Rising debt service cost weighing on FG's revenue – P

Rising debt service cost weighing on FG's revenue – PwC


Punch Newspapers
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Published 31 May 2021
The increasing cost of servicing debt continues to weigh on the Federal Government’s revenue profile, a PwC report has said.
This report was titled ‘Nigeria Economic Alert: Assessing the 2021 FGN Budget.’
According to the report, the Federal Government keeps spending a huge amount of its revenue to service debt, and the debt-to-revenue ratio in 2020 is about 83 per cent.
It said, “Actual debt servicing cost in 2020 stood at N3.27tn and represented about 10 per cent over the budgeted amount of N2.95tn. This puts the debt-to-revenue ratio at approximately 83 per cent, nearly double the 46 per cent that was budgeted.

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