The Federal Government has spend not less than N1.1 trillion on debt servicing in the last nine months, the Minister of Budget and National Planning, Senator Udoma Udo Udoma, has said.
According to the minister, this also includes N44 billion transferred to the sinking fund to retire maturing obligations.
Speaking at the KPMG CFO Forum in Lagos South west Nigeria , Udoma explained that within the period the Federal Government has spent N3.577 trillion out of the N6.06 trillion budgeted for the year 2016.
Explaining further, Udoma said: “The Federal Government has spent about N3.577 trillion as at September 2016 out of the full year budget of N6.06 trillion for the 2016 fiscal year. This translates to a 79 percent performance of the prorated budget for the first three quarters.
“In addition to the total of N2.44 trillion so far released for capital expenditure, non-debt recurrent and service-wide vote expenditure, a total of N1.138 trillion has also been paid out in domestic and foreign debt service expenditures.
This includes N44 billion transferred to the sinking fund to retire maturing obligations.”
Making reference to the oil sector, the Minister said: “After liberalisation of Premium Motor Spirit, PMS, otherwise known as petrol, in May this year, consumption dropped by about 30 percent, resulting in a savings of $4.5 million a day from the elimination of false subsidy claims.
“There is no doubt that we need the revenues from oil to get out of oil dependence. We are determined therefore to restore the health of the oil industry.
“With regard to oil production, we have intensified the use of dialogue to reduce the disruptions to oil production in the Niger- Delta.”