CBN: How Nigeria records N930bn two-month fiscal deficits 2023

*The Central Bank of Nigeria, in its monthly economic report for February 2023, discloses the estimated overall fiscal deficit of the Federal Government hit N930.8billion January and February due to a drop in the retained revenue

Isola Moses | ConsumerConnect

The Central Bank of Nigeria (CBN) has disclosed how the Federal Government recorded N930.8billion fiscal deficit January and February  2023.

ConsumerConnect reports the CBN noted this development in its monthly economic report for February 2023.

The Bankers’ Bank explained: “The estimated overall fiscal deficit of the FGN expanded in February, due to a drop in the retained revenue.

“At N513.05bn, the provisional fiscal deficit of the FGN rose by 22.8 per cent relative to the preceding month. However, it was 16.2 per cent below the budget benchmark.”

The report also revealed the fiscal deficit was N417.75bn January this year.

It stated accretion into the Federation Account decreased by 32.3 percent February relative to the preceding month, on account of the 60.2 percent fall in oil revenue.

The development, noted the report, further led to the expansion of the overall fiscal deficit (provisional) by 22.8 percent due to a 16.4 percent surge in provisional FGN capital expenditure, and a 7.7 percent fall in FGN retained revenue.

Total public debt at N46.25tn (23.2 percent of GDP) at end-December 2022, remained within the 40.0 percent national threshold.

“At N1.04tn, federation receipts were below the level in January by 32.3 per cent.

“Similarly, it was below the budget2 of N1.58tn by 34.3 percent,” the report said.

It also explained “the decline, relative to January was attributed to a fall in collections from petroleum profit tax and royalties.

“Oil revenue, at N308.07bn, was 60.2 percent below receipts in the preceding month.

“The outcome was driven, largely, by the 60.5 per cent decrease in collections from petroleum profit tax and royalties.”

The banking sector regulator as well said at N730.21bn, non-oil revenue was below the level in the preceding month and the monthly target by 3.7 percent and 7.4 percent, respectively.

The decrease was largely attributed to the 10.5 per cent decline in collections from corporate tax on account of the seasonality associated with its payments, noted the report.

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