Echotitbits – Nigeria News

Tag: debt service

  • FG projects ₦33.39tn revenue and ₦15.91tn debt service for 2026 fiscal year

    FG projects ₦33.39tn revenue and ₦15.91tn debt service for 2026 fiscal year

    In a report by The Nation, the Federal Government’s 2026 Appropriation Bill projects about ₦33.39 trillion in revenue and sets aside roughly ₦15.91 trillion for debt servicing, highlighting the scale of fiscal pressure.

    The story breaks down projected revenue sources and explains that domestic debt service—often including Central Bank financing—remains a major budget burden.

    Economists warn that a heavy debt-service line can shrink space for infrastructure and social spending, unless revenue performance improves and borrowing costs fall.

    The debate in the National Assembly is expected to focus on realism of revenue assumptions and strategies to reduce recurrent costs and improve tax efficiency without harming growth.

    Echotitbits take: Nigeria’s fiscal stress is now structural: debt service competes with everything. Watch for credible revenue reforms and whether debt management reduces cost, not just raises more borrowing.

    Source: The Nation https://thenationonlineng.net/fg-targets-%E2%82%A633-39trn-revenue-sets-aside-%E2%82%A615-91trn-for-debt-service-in-2026/ 11 January 2026

    The Nation 2026-01-11

    Photo Credit: The Nation

  • World Bank flags record debt squeeze as developing countries’ outflows hit 50-year high

    World Bank flags record debt squeeze as developing countries’ outflows hit 50-year high

    According to Punch, the World Bank is warning that developing economies face a persistent debt squeeze even as global financial conditions show pockets of relief.

    The report highlights rising debt-servicing burdens, a shift toward costlier financing, and pressure on domestic credit markets as governments borrow more at home.

    Reuters reported that the World Bank sees a $741 billion gap between debt-service outflows and new financing, adding that countries “are not out of danger.” In its own press release, the World Bank said developing countries “paid out $741 billion more” than they received in new financing between 2022 and 2024.

    Nigeria and peers will be watching what ‘breathing room’ really means: cheaper refinancing, longer maturities, and whether fiscal reforms can prevent the next rollover crunch.

    Echotitbits take: Nigeria and peers will be watching what ‘breathing room’ really means: cheaper refinancing, longer maturities, and whether fiscal reforms can prevent the next rollover crunch.

    Source: The Punch — January 3, 2026 (https://punchng.com/debt-wbank-urges-nigeria-others-to-rethink-exports/)

    The Punch January 3, 2026

    Photo Credit: The Punch

  • Budget review shows 20 states spent ₦494bn on debt service and foreign trips in nine months

    Budget review shows 20 states spent ₦494bn on debt service and foreign trips in nine months

    Photo Credit: The Punch
    2025-12-27 06:00:00

    Figures cited by Punch indicate an analysis of budget reports found 20 Nigerian states spent about ₦494bn on debt service and foreign travel within the first nine months of 2025.

    The report highlights how debt repayments can crowd out social and capital spending, while travel costs often become a lightning rod in public debates about austerity and value-for-money.

    Fiscal reform advocates argue that clearer procurement rules, public dashboards, and quarterly disclosures can help citizens track what travel delivers—training, investment, diplomacy—or whether it is simply overhead.

    Echotitbits take:
    The key question is opportunity cost: what didn’t get funded because debt service and travel consumed scarce resources? Watch for state-level transparency reforms, and whether assemblies demand sharper reporting on outcomes tied to trips.

    Source: The Punch — December 27, 2025 (https://punchng.com/foreign-trips-debt-service-gulp-n494bn-in-20-states/)
    The Punch December 27, 2025

  • FG’s Deficit Funding: N6.1trn Raised Locally in Six Months

    FG’s Deficit Funding: N6.1trn Raised Locally in Six Months

    Photo Credit: The Punch
    2025-12-25 09:10:00

    In a budget-performance update cited by The Punch, Nigeria’s federal government reportedly raised about N6.10 trillion from domestic sources in the first half of 2025 to help plug a wide fiscal gap. The report points to a deficit of roughly N5.70 trillion, with financing largely driven by local borrowing instruments.

    The same performance data indicates debt service pressure remains heavy, with large outflows to service obligations even as revenues lag spending needs. That combination—high deficits and high debt service—continues to compress fiscal space for social and capital priorities.

    The report also suggests the borrowing mix leaned heavily on bonds and other local issuances, reinforcing the concern that domestic credit may be crowded toward government paper instead of private-sector lending.

    Corroborating the same Budget Office picture, another outlet reported the government had to finance the deficit through “domestic borrowing… of N5.70tn” and proceeds including “privatisation… N64.92bn,” while a separate report noted “debt service was N4.44tn,” underscoring the weight of repayments in the fiscal structure.

    Echotitbits take: Nigeria’s deficit story is increasingly a debt-service story. Watch for (1) whether revenue reforms lift the non-oil base fast enough, and (2) whether domestic borrowing costs ease—because a sustained high-rate environment makes deficits more expensive and squeezes development spending.

    Source: The Punch — December 25, 2025 (https://punchng.com/budget-deficit-fg-raises-n6tn-locally-in-six-months/)

    The Punch 2025-12-25

  • Budget pressure: FG projects ₦60.97tn oil revenue for 2026 on tighter assumptions

    Budget pressure: FG projects ₦60.97tn oil revenue for 2026 on tighter assumptions

    Photo credit: The Punch

    2025-12-22 09:00:00

    An analysis published by *The Punch* says the Federal Government is projecting about ₦60.97 trillion in oil revenue for 2026—lower than the prior year’s expected oil take—reflecting more cautious assumptions on price and output.

    The projection is tied to the 2026 Appropriation framework and the administration’s budget posture, where debt service, capital expenditure, and security spending are competing heavily for limited revenues.

    Analysts note that oil revenue forecasts are especially sensitive to production disruptions, theft, and global price swings—meaning fiscal planning can change quickly if any variable moves.

    The broader implication is clear: if oil underperforms, the pressure shifts to non-oil revenues, borrowing, and reforms—each with political and economic trade-offs.

    Reuters reported the budget assumes “a crude oil price of $64.85 per barrel” with output around “1.84 million barrels per day,” while *The Guardian (Nigeria)* similarly stated the plan is built on a “$64.85 per barrel oil benchmark” and “1.84 million barrels per day” production assumption.

    **Echotitbits take:** Conservative oil assumptions are good discipline—but only if the government actually delivers non-oil revenue growth. Watch for tax admin upgrades, customs efficiency, and whether production targets improve without new leakage.

    Source: The Punch — December 22, 2025 (https://punchng.com/fg-projects-lower-n60-97tn-oil-revenue-for-2026/)

  • Debt Service and Salaries Outstrip Federal Revenue in 2025 Budget Data

    Debt Service and Salaries Outstrip Federal Revenue in 2025 Budget Data

    2025-12-18 00:00:00

    According to Punch, official budget documents show that debt service and personnel costs consumed more than the Federal Government’s total revenue in the first seven months of 2025, underscoring the pressure on fiscal space.

    The report says earnings came in well below pro-rata targets, forcing deep cuts to capital spending and tightening the room for new projects without additional borrowing or revenue reforms.

    The figures add weight to growing concerns about budget credibility, cash-backing of appropriations, and the need for stronger domestic revenue mobilisation.

    BusinessDay reported that “debt servicing and personnel costs consumed more than the Federal Government’s entire revenue” for the period, citing official budget documents. (BusinessDay)

    Another report on the same figures said Nigeria earned far below targets between January and July and that the gap hit capital releases hard. (Legit.ng)

    Analysis/Echotitbits take: When “fixed” obligations swallow revenue, the real economy suffers via delayed infrastructure and weak service delivery. Watch for 2026 revenue measures, credible subsidy/accounting reforms, and how government aligns spending plans with cash realities.

    Source: Punch — December 18, 2025 (https://punchng.com/salaries-debt-service-gulp-105-of-govt-revenue/)

    Photo credit: Punch

  • Senate backs ₦54.46trn 2026 spending framework, cuts oil price benchmark to $60

    Senate backs ₦54.46trn 2026 spending framework, cuts oil price benchmark to $60

    Photo Credit: Punch
    2025-12-16

    Lawmakers in the Senate have approved the 2026–2028 medium‑term expenditure and fiscal strategy framework, endorsing a ₦54.46 trillion 2026 spending plan and lowering the crude oil benchmark for 2026 to $60 per barrel.

    According to reports on the debate, the lower benchmark reflects caution about global oil volatility, even as output assumptions remain aggressive. The framework also keeps key macro assumptions such as the exchange‑rate projection and multi‑year inflation and growth targets.

    The decisions matter because they set the ‘envelope’ for the 2026 budget — shaping how much government can borrow, what it can spend on capital projects, and how it prioritises debt servicing and social spending.

    Markets will be watching whether the conservative oil price assumption reduces revenue disappointment — and whether reforms, including tax administration changes, can realistically close the gap between projections and collections.

    BusinessDay: Musa said the adjustment was necessary “in recognition of the global geopolitical tensions in Europe and the Middle East and the sensitivity of global crude oil prices.”

    THISDAY: “A key decision was the downward review of the crude oil benchmark price for 2026 from $64.85 per barrel to $60.”

    Analysis/Echotitbits take: A lower oil benchmark can improve budget credibility — but only if production and revenue assumptions aren’t over‑optimistic. Watch the final budget draft, borrowing plans, and how the government hedges against oil‑price and FX shocks.

    Source: Punch — December 17, 2025 — https://punchng.com/senate-lowers-oil-benchmark-approves-n54-46tn-budget/