Nigeria's fiscal deficit increases to N824.79 billion

The Federal Government’s fiscal deficit rose month-on-month (MoM) by 0.1 percent to N824.79 billion in April from N823.91 billion in March.

This is according to the Central Bank of Nigeria (CBN) April 2024 Monthly Economic Report.

The report showed that the deficit was 7.92 percent higher than the budgeted N764.19 billion for the period. 

The deficit was due to a 0.55 percent MoM decline in retained revenue to N419.91 billion in April from N422.23 billion in March, according to the report.

The decline in revenue was a result of lower receipts from exchange gains.

Similarly, the FG expenditure for April declined MoM by 0.16 percent to N1.246 trillion from N1.244 trillion in March due to reduced capital spending. 

 “The fiscal operations of the Federal Government of Nigeria, FGN, in April resulted in an expansion in the fiscal deficit," the CBN said.

“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 receipts from exchange gains. 

“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 a 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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