Nigeria federal government's deficit spending increased by 2.05 percent year-on-year to N1.99 trillion in the first four months of 2024, from N1.95 trillion in the corresponding period in 2023.
Economic reports by the Central Bank of Nigeria (CBN) for the period showed that the deficit spending rose by 3.6 percent to N1.06 trillion in January from N1.1 trillion in December 2023.
It fell, however, in February by 25.6 percent to N788.64 billion but rose again in March by 4.4 percent to N823.91 billion.
The upward trend continued in April when the deficit spending rose again by 0.1 percent to N824.79 billion.
According to CBN, the expansion in deficit recorded in April was due to a 0.55 percent MoM decline in retained revenue to N419.91 billion in April from N422.23 billion in March.
The decline in revenue was as a result of lower receipt from exchange gain.
The CBN said: “The fiscal operations of the Federal Government of Nigeria, FGN, in April resulted in an expansion in the fiscal deficit.
“Provisional data showed that primary and overall deficits rose to N260.98 billion and N824.79 billion, respectively, from N249.43 billion and N823.91 billion, in the preceding month.
“The expanded deficit reflected the sharper decline in retained revenue “FGN retained revenue dipped in the review period, due to lower receipt from exchange gain.
“Provisional data indicated that, at N419.91 billion, FGN retained revenue fell relative to the level in March 2024 and the monthly benchmark by 0.55 and 74.29 per cent, respectively.
“The provisional data showed that aggregate expenditure of the FGN declined, due to reduced capital spending.
“At N1,244.71 billion, provisional data indicated that expenditure was 0.12 per cent below the level in the preceding month, and 48.10 per cent short of the projected spending of N2,398.12 billion.
“The decline was attributed, largely, to reduction in capital outlay in the review period.
“Further analysis showed that recurrent and capital accounted for 84.5, and 6.30 per cent, respectively, while transfer payments constituted 9.2 per cent.”
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