FG generates over N2tr in Q1, records N392 billion deficit
Issues N15 billion Series II Green Bond
The Federal Government recorded a gross income of N2.31 trillion in the first quarter of 2019, but this was lower than the proportionate quarterly budget estimate of N3.32 trillion, representing 30.5 per cent shortfall.
It also fell below the receipts in the preceding quarter by 4.2 per cent, a development attributed to the shortfall in earnings from both oil and non-oil revenue components during the review period.
The development is an indication that the Federal Government’s fiscal challenges may not have been over after all, leaving the country with no option than to borrow, as well as compound the already bad debt service-to-revenue ratio.
According to the Economic Report of the Central Bank of Nigeria (CBN), of the N2.31 trillion gross income for the first quarter of 2019, the retained revenue was N798.82 billion.
However, government’s estimated expenditure was put at N1.19 trillion and was below the proportionate quarterly budget estimate of N2.38 trillion by 49.6 per cent and the level in the preceding quarter by 34.8 per cent, leaving a deficit of N398.22 billion.
Consequently, recurrent expenditure got 71.4 per cent of the available fund; capital expenditure had 23 per cent, while transfers got 5.6 per cent of the total expenditure.
A breakdown of the recurrent expenditure showed that non-debt obligation was 61 per cent, while debt service payments accounted for 39 per cent of the total.
Gross oil receipt, at N1.41 trillion or 61.2 per cent of the total revenue, was below both the proportionate quarterly budget estimate and the receipts in the preceding quarter by 26.4 per cent and 3.5 per cent, respectively.
Non-oil revenue at N896.04 billion or 38.8 per cent of the total also fell below the proportionate quarterly budget estimate of N1.4 trillion by 36 per cent due to shortfalls in receipt from Federal Government’s independent revenue and corporate tax
While total statutory allocation to the state governments from the Federation Account, stood at N641.06 billion, total allocations to local governments from the Federation and VAT Pool Accounts in the first quarter of 2019 stood at N381.56 billion.
Meanwhile, the Federal Government has announced the issuance of a second series Green Bond debt issue worth N15 billion.
The issue, according to the Debt Management Office (DMO) Director-General, Patience Oniha, followed the Federal Government’s successful debut Green Bond Issuance of N10.69 billion in December 2017 – by which Nigeria became the first African country to issue a Green Bond – the Federal Government of Nigeria.
She said the Federal Ministry of Finance, Federal Ministry of Environment and the DMO would be engaging investors at respective road-show sin Lagos and Abuja today, May 27, 2019 and tomorrow, May 28, 2019.
She further explained that the Series II Green Bond issuance is a further demonstration of the FGN’s commitment to the reduction of greenhouse gas emissions by 20 per cent (unconditionally) by 2030 as outlined under the Paris Agreement signed on September 21, 2016.