Emmanuel Ochayi
In a financial disclosure from the Central Bank of Nigeria (CBN), the Federal Government faced an N1.54 trillion fiscal deficit during July and August 2023, despite a surge in revenue streams.
The CBN’s monthly economic report for August shed light on this, highlighting a shortfall that continues to challenge fiscal goals.
Join our WhatsApp ChannelAddressing the fiscal deficit, the report noted declines in interest payments, contributing to the decrease in the deficit. However, the overall fiscal deficit of N726.85 billion in August, though a reduction from the previous month, still fell short of targets.
“The provisional fiscal deficit of the FGN, at N726.85bn, contracted…,” the report stated, emphasizing a drop relative to the previous month, attributed to reduced interest payments during this period.
READ ALSO: Nigeria’s External Reserves Decline By $520 Million In 5 Weeks, CBN Warns Of Economic Challenges
The report highlighted an increase in gross federation account revenue, attributed to improved oil earnings, which totaled N1.69 trillion. Despite this boost, the receipts fell short of the N1.76 trillion benchmark.
The revenue surge stemmed from heightened collections from various sectors, with non-oil revenue taking the lead at 81.5%, while oil revenue contributed 18.5%.
CBN’s analysis revealed that oil revenue exceeded July 2023 levels by 27.0%, primarily driven by increased receipts from production-sharing contracts and NNPCL dividends. Conversely, non-oil revenue slightly decreased but surpassed the monthly target by 43.8%.
The Federal Account Allocation Committee distributed a net balance of N966.11 billion among the three tiers of government, with the federal, state, and local governments receiving varying amounts.
Despite the surge in net disbursement compared to July 2023, the overall figure still fell short of the monthly target, signaling ongoing challenges in meeting fiscal objectives amidst revenue boosts.
