April 25, 2024

FG’s deficit spending rises 52% to N12.86trn in 2023


By Elizabeth Adegbesan

The Federal Government recorded a 52.9 per cent, year-on-year, YoY increase in deficit spending to N12.86 trillion in 2023 from N8.41 trillion in 2022. 

The rise in deficit spending was driven by a 40.6 per cent rise in expenditure which moderated the impact of a 20 per cent increase in revenue during the review period.

Vanguard analysis of data on the fiscal activities of the FG contained in the Central Bank of Nigeria, CBN, Quarterly Economic Statistical Bulletin Tables for 2023 showed that the FG recorded retained revenue of N5.96 trillion in 2023, up by 20 per cent   from N4.97 trillion in 2022.

Following the same trend, expenditure rose to N18.83 trillion in 2023 representing 20.5 per cent, YoY increase from N13.39 trillion recorded in 2022.

The FG recorded the highest deficit spending of N1.68 trillion in March 2023.

On January 3, 2023, Former President Muhammadu Buhari signed the 2023 Appropriation Bill of N21.83 trillion into law.

 The budget was based on N10.49 trillion, revenue and an N11.34 trillion deficit. 

The deficit spending as shown in the CBN’s data showed that the actual deficit spending for the year exceeded the budget deficit of 13 percent.

The CBN’s data also showed a 43 percent fall in retained revenue when compared to the budgeted revenue of N10.49 trillion for 2023.

However, the actual expenditure was 13.7 percent below the budgeted N21.83 trillion approved for the year.