The Federal Government has planned to spend over N3.124 trillion for debt servicing in 2021, underlining the level of indebtedness of Africa’s biggest economy.

Figures from the budget presented to the National Assembly earlier today by President Muhammadu Buhari reveals that a total of N2.183 trillion has been set aside to service domestic debts, while N940.89 billion has been provided for foreign debt service.

In the same vein, N220 billion is provided for transfers to the sinking fund to pay off maturing bonds issued to local contractors and creditors.

Fiscal assumptions for the budget include benchmark oil price of $40 per barrel, daily production of 1.86 million barrels of oil per day, exchange rate of N379 to a US dollar and 3% GDP growth.

The budget projected an oil revenue of N2.01trillion, N1.49 trillion non-oil revenue and a deficit of N5.2 trillion.