A review of the Medium Term Expenditure Framework (MTEF) published by the President Bola Tinubu-led administration, has shown that the country spent N7.4 trillion as debt servicing between January and August 2024.
According to the document, domestic debt gulped N3.6 trillion while foreign debt servicing took N3.8 trillion.
This is even as it spent N3.6 trillion on capital expenditure in the eight months period between January and August.
Capital expenditure for ministries, department and agencies took N2.5 trillion while government enterprises gulped N95 billion, donor funding and grants stood at N1 trillion.
This would mean that the government spent twice what it spent on capital expenditure on debt servicing.
Capital expenditures are meant to be focused on infrastructural development .
In a related development, the government expects its expenditure to grow to N52 trillion by 2027.
In the same year the government plans to earn N38.6 trillion, meaning that it plans a deficit of N13.4 trillion by then.
In 2026, the government plans to earn N35 trillion and spend N47 trillion, meaning a N12 trillion deficit is spent.
In the coming year of 2025, the country plans to earn N34.8 trillion while spending N47.9 trillion, leaving a deficit N13.1 trillion.
This development means that the government plans to borrow more in the coming years, in the face of inadequate revenue.
There have been concerns by experts on impact of debt servicing on revenue of the government and on development in the country.