Nigeria’s fiscal deficit hits N824.79 billion in one month

Nigeria’s public finances have taken a downward slide as the Federal Government’s fiscal deficit rose by 0.1 per cent to N824.79 billion in April, from N823.91 billion recorded in March.

This was contained in the April 2024 Monthly Economic Report of the Central Bank of Nigeria (CBN).

The report showed that the deficit was 7.92 per cent higher than the budgeted N764.19 billion for the month.

Though the July inflation figure decelerated for the first time under President Bola Tinubu, there has been poor cash flow as the country battles with oil theft.

On the brighter side, the rise in remittances has been phenomenal as $555 million was sent back home by Nigerian nationals abroad in July.

According to the report, the expansion in the deficit was due to a 0.55 per cent month-on-month (MoM) decline in retained revenue to N419.91 billion in April from N422.23 billion in March.

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

Similarly, the FG’s expenditure for April declined MoM by 0.16 per cent to N1.246 trillion from N1.244 trillion in March due to reduced capital expenditure.

The report 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 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 N1.245 trillion, provisional data indicated that expenditure was 0.12 per cent below the level in the preceding month and 48.1 per cent short of the projected spending of N2.4 trillion.”