The Federal Government recorded N930.8 billion fiscal deficit in January and February 2023 according to the Central Bank of Nigeria (CBN).
The CBN stated in its monthly economic report for February 2023 that, “The estimated overall fiscal deficit of the FGN expanded in February, due to a drop in the retained revenue.
“At N513.05 billion, 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.”
According to the report, the fiscal deficit was N417.75 billion in January.
The report said accretion into the federation account decreased by 32.3 per cent in February relative to the preceding month, on account of the 60.2 per cent fall in oil revenue.
It added that the development led to the expansion of the overall fiscal deficit (provisional) by 22.8 per cent due to a 16.4 per cent surge in provisional FGN capital expenditure, and a 7.7 per cent fall in FGN retained revenue.
Total public debt at N46.25 trillion (23.2 per cent of GDP) at end-December 2022, remained within the 40.0 per cent national threshold.
It stated that, “At N1.04 trillion, federation receipts were below the level in January by 32.3 per cent. Similarly, it was below the budget of N1.58 trillion by 34.3 per cent.
“The decline, relative to January was attributed to a fall in collections from petroleum profit tax and royalties. Oil revenue, at N308.07 billion, was 60.2 per cent 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.”
At N730.21 billion, non-oil revenue, was below the level in the preceding month and the monthly target by 3.7 per cent and 7.4 per cent, 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.