May 24, 2024
Nigeria’s deficit spending drops by 21% to N530bn in October, says CBN
CBN Selects Technical Partner for Digital Currency Project 
– By Godswill Odiong

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By Eyo Nsima
The Central Bank of Nigeria, CBN, has disclosed that the deficit spending by the Federal Government fell by 21 percent, Month-on-Month, MoM, to N530 billion in October 2021, from N670.7 billion in September last year, due to a decline in interest payment on domestic debts.
According to the CBN October 2022  Economic Report released on Tuesday, the decline in FG’s deficit spending was caused by a 13.1 percent, MoM decline in aggregate expenditure for the month because of a drop in interest payments on domestic loans.

The report stated: “The FGN Retained Revenue decreased due, largely, to a fall in the FGN Independent Revenue. At N547.85 billion, the provisional retained revenue of the FGN was below the preceding month and the proportionate budget by 3.7 percent and 34.1 percent, respectively.

“Driven by the decline in domestic interest payment, the provisional aggregate expenditure of the FGN fell by 13.1 percent and 25.3 percent, relative to September 2022 and the monthly target, respectively. The provisional aggregate expenditure of the FGN amounted to N1.078 trillion billion in the review period. A breakdown of the expenditure revealed that recurrent expenditure and capital expenditure accounted for 96.2 percent and 3.8 percent of total expenditure, respectively.

“The estimated overall fiscal deficit of the FGN narrowed in October 2022. At N530.87 billion, the provisional fiscal deficits of the FGN were reduced by 21.0 percent and 13.3 percent compared with the levels in the preceding month and the budget benchmark, respectively.

“Receipts into the Federation Account increased in October 2022, as a result of a significant boost in oil revenue. Provisional data shows that gross federation receipts at N1.178 billion exceeded the level in September 2022 by 7.0 percent, but below the target of N1.58 trillion billion by 25.4 percent.

“The rise in revenue was attributed to the surge in international crude oil prices. In terms of contribution, non-oil revenue remained dominant, constituting 54.2 percent, while oil revenue accounted for 45.8 percent.

“Oil revenue, at N540.31 billion, outperformed receipts in the preceding month by 100.8 percent, driven, largely, by the 103.1 percent rise in collections from Petroleum Profit Tax and Royalties.

“However, at N638.33 billion, non-oil receipts were below the preceding month by 23.3 percent, and fell short of the monthly target by 19.1 percent.”

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