CBN

•As revenue into Federation account drops 9.8%

By Babajide Komolafe,  Economy Editor

The Federal Government recorded deficit spending of N593 billion in August this year, representing seven per cent higher than N554.21 billion recorded in the previous month.  

The increased deficit was driven by 4.2 per cent,   month-on-month MoM,   increase in capital expenditure which moderated the impact of a 1.7 per cent, MoM,   increase in FG’s revenue as well as 10.8 per cent, MoM decrease in debt service in August

The Central Bank of Nigeria, CBN disclosed this in its Economic Report for August released yesterday, which showed that FG recorded N639.47 billion as  Retained revenue in August, representing 1.7 per cent month-on-month MoM increase  from N629.03 billion in July. Aggregate expenditure also rose 4.2 per cent, MoM, to N1.23 trillion from N1.18 trillion in July.  

The increase in aggregate expenditure was driven by a 4.2 per cent, MoM, increase in Capital expenditure which rose to N281.78 billion from N179.27 billion in July.  

However,  debt service fell N10.8 per cent, MoM, to N436.60 billion from N489.80 billion in July.

“The overall fiscal balance recorded a deficit on account of higher capital expenditure. At N593.09 billion, the provisional fiscal deficit of the FGN rose by 7.0 per cent when compared with the level in July 2022 but declined by 3.2 per cent relative to the monthly budget of N612.52 billion”, the CBN stated.

Meanwhile, revenue into the Federation Account fell by 9.8 per cent, MoM in August due to fall in FGN Independent revenue.  

The CBN stated: “Gross federation receipts at N1.31 trillion  was below the target of N1.58 trillion  by 17.0 per cent. Relative to the collection in July 2022, non-oil receipts at N826.90 billion, weakened by 9.8 per cent, due largely to the decline in FGN Independent Revenue”.  

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