Thread by @BudgITng

THREAD: Let us take a look FG finances in 2018. Are things getting better?

N2.09tn, the highest ever, was spent on debt service in 2018. This is getting scary.

FG Recurrent Expenditure (including Statutory Transfers) hit N5.85tn while N3.86tn was total revenues earned by FG.

In 2018. FG earned a total revenue of N3.86tn.

Oil now accounts for 51% of public revenues. Independent revenue from FG agencies grew from N295bn to N395bn. Excellent work. CIT also had an impressive 21% growth, as FG share reached N660bn.

FG Revenue Breakdown:

Oil Revenue: N1.96tn
Non-Oil Revenue: N1.12tn
FG Independent Revenues: N395bn
Other Financing Sources: N385bn
Special Accounts: N306bn
Exchange Rate Differential: N79bn

We wonder why other financing sources are not explained.

Did FG meets its revenue target for 2018? While FG planned to earn N7.16tn in 2018, it was only able to reach N3.85tn, a 54% revenue performance.

Revenue grew from N2.66tn in 2017 to N3.86tn in 2018. This was mainly due to growth in oil revenue.

Higher oil prices & stable production that shot up FG share of oil revenue from N1.12tn in 2017 to N1.96tn in 2018. FG did not record any earned income from recovered assets or sales of oil and gas assets.

FG personnel costs has risen from the N1.8tn mark to N2.1tn, without the full implementation of the new minimum wage plan.

N144bn was spent on SIP (recurrent), N59bn on Presidential Amnesty Program and N305bn was deducted from its special accounts.

In 2018, FG spent N2.09tn on servicing public debts. This grew from N1.63tn in 2017. FG is spending so much on servicing debt and it plans to borrow more.

Total Recurrent expenditure shot up to N5.39tn in 2018, a N800bn growth in a year without new minimum wage implementation.

FG claims spending N1.65tn on capital exp. in 2018. However, we will be asking for details for public accountability.

FG borrowed N1.74tn in 2018 and sources for additional deficit (borrowing) of N1.90tn was not stated. Who is your guess that has covered the shortfall?

n the end, FG spent a sum of N7.51tn based of a revenue of N3.86tn, creating a deficit of N3.64tn.

Though FG recorded revenue of N3.86tn, it spent N5.86tn on recurrent expenditure, meaning N2tn was borrowed to fund recurrent expenses.

FG also spent N5.86tn on Recurrent expenditure & statutory transfers being 78% of the total expenditure. 22% of total expenditure was spent on capital expenditure.

A sum of N329bn was utilized for Power, Works & Housing projects, N139bn for transport projects, N52bn for health projects, N47bn for education projects, N71bn for Water resources for and N135bn for Agriculture projects. Health & Education still poorly invested in.

It is clear that Nigeria has a huge revenue problem & the current pace of recurrent expenditure is not sustainable.

We need more details on N1.65tn capital expenditure in a year. We will follow up with FOI.

Infographics to be released later.

End of THREAD.