“FG’s Spending Outpaces Revenue by N1.43tn, Says CBN Report”

According to the Central Bank of Nigeria’s (CBN) economic report for the third quarter of 2023, the Federal Government’s expenditure exceeded its revenue by N1.43 trillion in the first three months of 2023. This deficit was 9.6% higher than the figure for the last quarter of 2022.

Key highlights from the report include:

1. Fiscal Deficit: The provisional fiscal deficit of the Federal Government of Nigeria (FGN) in Q1 2023 stood at N1.43 trillion, representing a 9.6% increase compared to the preceding quarter but 22.1% below the target.
2. Revenue Shortfall: Low oil revenue realization significantly affected fiscal performance in Q1 2023. The retained revenue of the FGN fell by 10.7% compared to Q4 2022 and was 46.1% below the quarterly target.
3. Expenditure: FGN’s aggregate expenditure declined by 1.3% compared to the preceding quarter and 36.0% below the quarterly target.
4. Consolidated Public Debt: As of the end of December 2022, Nigeria’s consolidated public debt stood at N46.25 trillion, equivalent to 22.8% of GDP.
5. Revenue Composition: Non-oil revenue continued to dominate government revenue, accounting for 61.4%, while oil receipts accounted for 38.6%.
6. Oil Revenue Decline: Oil revenue declined by 3.0% compared to Q4 2022 and 43.5% below the quarterly target. This was attributed to revenue shortfalls from petroleum profit tax and royalties due to lower domestic crude production.
7. Non-Oil Receipts: Non-oil receipts improved slightly by 1.2% compared to the preceding quarter but remained 9.6% below the quarterly target.

The report highlights the ongoing fiscal challenges faced by the Nigerian government, largely driven by fluctuations in oil prices and production, as well as revenue shortfalls. The government’s efforts to bridge the revenue-expenditure gap will be crucial in addressing the fiscal deficit and ensuring economic stability.