Just as there was a decrease in expenditures, there was also a decrease in fiscal deficit by 29% from N3.96 trillion in the Q1 of last year to N2.83 trillion in the same period this year.

There was also a decrease in debt servicing spending by 33.5% from N1.97 trillion in Q1 2023, as debt servicing to revenue ratio was 149% in the first quarter of last year.

Although there was a reduction in the ratio this year, the high percentage still shows the critical challenge of managing the country’s debt in a sustainable manner, as substantial portions of the revenue are directed towards servicing existing debts rather than development projects.

The federal government spent more on debt servicing than it spent on personnel costs or capital expenditures.

Personnel costs for Q1 2024 amounted to N1.15 trillion, an increase of 17.1% from the N978.11 billion spent in the same period last year.

However, capital expenditure fell by 35.9% to N1.15 trillion in Q1 2024, from the N1.8 trillion recorded in the same quarter of 2023.