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2024 Budget: Debt Servicing To Gulp 31% Of National Budget



Bola Tinubu

The Federal Government plans to spend 61.63 per cent of its planned 2024 on personnel and debt service costs.


The personnel and pension costs of N7.78tn and the debt service cost of N8.25tn make up N16.03tn out of the N26.01tn 2024 budget.


The government would spend more on debt servicing than it would spend on paying the salaries and pensions of its workers.

Also, the amount budgeted for personnel and pension costs is expected to increase from N5.87tn in 2023 to N7.78tn in the 2024 budget.

This showed an increase of N1.91tn or 32.54 per cent amid concerns for a reduction in the cost of governance.

A 30.74 per cent increase in debt service cost from N6.31tn in 2023 to N8.25tn by 2023.

The World Bank in June 2023 stated that the Federal Government’s spending on personnel costs and debt servicing exceeded total revenues in 2022.

According to the Washington-based bank, this was the first time the Federal Government’s personnel costs and debt servicing surpassed its total revenue.

The bank added that due to this, spending on capital expenditures weakened.

According to the bank, personnel costs and interest payments on loans comprised 59 per cent of the government’s 2022 total expenditures.

The Federal Government also spent 102 per cent of its revenues on personnel costs and interest payments during the period under review.

Also, the Federal Government on Monday said it was projecting N26.01tn as expenses for the 2024 fiscal year.

This was an increase of 19.15 per cent from the N21.83tn approved in 2023.

This is as it approved the Medium-Term Expenditure Framework for 2024 – 2026.

The FG affirmed that the administration would maintain the January – December budget implementation cycle as President Bola Tinubu would soon present the 2024 appropriation bill to the National Assembly to ensure its ratification before December 31, 2023.

“The aggregate expenditure is estimated at N26.01tn for the 2024 budget, which includes statutory transfers of N1.3tn non-debt recurrent expenditure of N10.26tn. Debt service estimated at N8.25tn as well as N7.78tn being provided for personnel pension cost,” the Minister of Budget and National Planning, Abubakar Bagudu, told State House Correspondents after the Federal Executive Council meeting at the Presidential Villa, Abuja.

Bagudu clarified the increased debt service, saying it was “because N22.7tn Ways and Means was securitised, meaning it became a Federal Government debt at nine per cent.”

Equally, personnel costs rose significantly due to transfers from the agreement between the Federal Government and the Organised Labour.


Breaking news: Minimum Wage: Labour rejects FG’s N54,000 offer



The organised labour has rejected the Federal Government N54,000 new minimum wage proposal.


According to reliable source, the meeting on the ongoing negotiations on new minimum wage has been adjourned till Wednesday after the organised labour.


Media report has it that the Federal Government upped its offer from its earlier proposed N48,000 to N54,000.

Tuesday’s meeting came as a result of the walkout staged by members of the organised labour following the proposal of N48,000 as minimum wage by the Federal Government during last week’s meeting.

During that meeting, the OPS had also proposed N54,000 while labour insisted on its N615,000 living wage demand.

Our correspondent who spoke to sources who attended the follow-up meeting on Tuesday learnt that the Federal Government upped its offer from N48,000 to N54,000.

“Well, during the meeting, the government increased its offer from N48,000 to N54,000. However, labour rejected that offer and the meeting has been adjourned till Wednesday,” a source who asked not to be named said.

When asked if the government’s side was showing any sign of seriousness, the labour leader said, “No seriousness at all. Even state governors did not show up. Those who represented them, like Bauchi and Niger states, did not have the mandates to speak on their behalf.

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Real Madrid’s goalkeeper shares recovery insights after two injuries



Real Madrid goalkeeper Thibaut Courtois has opened up about his recovery journey following two serious knee injuries.


Courtois said, “In August, I cried because the worst thing that can happen to you in football is a cruciate ligament injury. When I returned home, I said that I was going to work hard and come back stronger. That was my idea from the beginning: to stay positive, fight, never give up, and push my limits.


“Many thought my season was over, but I knew it wasn’t,” Courtois told Marca.

Recall that for most of the current season, Courtois missed out due to two injuries: a cruciate ligament tear and a meniscus injury. In his absence, first-choice goalkeeper was Chelsea’s loanee Kepa Arrizabalaga, and later, he faced competition from Andriy Lunin.

Upon his return, Courtois played in 3 La Liga matches, keeping clean sheets in all of them. In the last game against Alaves, the Belgian made 10 saves.

Earlier, it was reported that Courtois’ recovery from injury will be featured in a documentary series.

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