by Niyi Jacobs
Amid a growing debt burden, the Federal Government of Nigeria allocated ₦336.61 billion to pensions and gratuities in the first nine months of 2024, a slight decline from previous allocations.
According to the Central Bank of Nigeria (CBN), debt servicing during the same period soared to ₦8.94 trillion, consuming 47% of total government expenditure and 147% of retained revenue.
BusinessNG notes that disproportionate focus on debt servicing raises concerns about the government’s capacity to meet social obligations, including payments to retirees.
Recurrent expenditure surged by 45.6% to ₦15.11 trillion, while personnel costs rose by 20% to ₦3.59 trillion. However, pensions and gratuities saw minimal prioritization, signaling the impact of fiscal pressures on welfare spending.
Financial experts have warned that without urgent reforms, the rising debt servicing costs—projected to hit ₦16 trillion by 2025—could further erode funding for critical social programs, leaving retirees and other vulnerable groups at risk.
The government must strike a balance between managing debt obligations and safeguarding the welfare of its citizens, particularly those dependent on pensions and gratuities.
