Buhari presents 2023 budget to National Assembly with just under a third of it going on debt servicing

PRESIDENT Muhammadu Buhari has presented Nigeria's 2023 budget valued at N20.5trn ($47.43bn) to the National Assembly in what is seen as a damage limitation exercise that will see as much as N6trn or just under a third of it spent on debt servicing.

Like many other African countries, Nigeria's economy has been hit hard by the coronavirus pandemic as it produces very little for export and the demand for primary products plummeted. As a result, for the last two years, Nigeria's budget has been financed by borrowing, leading the country's debt profile growing.

Unveiling what will be his last budget before leaving office next year, President Buhari said that going forward, the country needs to remove its petrol subsidy, as the policy is not sustainable. Speaking during the presentation of 2023 budget estimate to a joint session of the National Assembly, he said there was the need to put an end to subsidy regime in the country in 2023.

According to President Buhari, the nation’s gross domestic product (GDP) grew by 3.5% during the first quarter of 2022. He also said that the government was doing everything possible to ensure improved power generation in the country, adding that the government must continue to work for higher growth so that Nigerians will feel the impact of it.

Today's budget represents a significant increase on recent budgets, as President Buhari has gradually spent more every year since assuming office in 2015. His budgetary records has s been as follows - 2016 - N6.06tn, 2017 - N7.29trn, 2018 - N8.6trn, 2019 - N8.83trn, 2020 - N9.79trn, 2021 - N13.08trn, 2022 - N16trn and 2022 -N19trn.