The Federal Government’s expenditure exceeded revenue by N1.43tn in the first three months of 2023, according to figures obtained from the Central Bank of Nigeria.
The CBN revealed in its economic report for the third quarter of 2023 obtained by The PUNCH on Friday that this was 9.6 per cent higher than the last quarter of 2022 figure.
It stated; “The fiscal operations of the FGN in 2023, Q1, resulted in a deficit. At N1.43tn, the provisional fiscal deficit of the FGN was 9.6 per cent higher than the level in the preceding quarter but 22.1 per cent below the target.”
According to the report, the fiscal performance in 2023, Q1 was impaired by low oil revenue realisation.
Consequently, the retained revenue of the FGN fell by 10.7 percent, relative to 2022, Q4, and was 46.1 percent below the quarterly target.
FGN’s aggregate expenditure also declined by 1.3 and 36.0 per cent, relative to the preceding quarter and the quarterly target, respectively.
It said; “Thus, the FGN overall deficit widened relative to 2022, Q4, but narrowed by 22.1 percent when compared with the proportionate budget.
Consolidated public debt, as at end-December 2022, stood at N46.25tn (or 22.8 percent of GDP).
At N3.48tn, the CBN report said, gross federation revenue fell below the levels in 2022, Q4 and the budget benchmark by 0.4 and 26.6 percent, respectively.
Non-oil revenue continued to dominate government revenue, accounting for 61.4 percent, while oil receipts accounted for 38.6 percent.
Oil revenue, at N1.34tn, declined by 3.0 and 43.5 percent, relative to 2022, Q4 and quarterly target.
The performance was indicative of revenue shortfalls from petroleum profit tax and royalties, following lower domestic crude production.
Conversely, non-oil receipts, at N2.14n, improved against the preceding quarter by 1.2 percent, but was 9.6 percent below the quarterly target of N2.37tn,” the report said.
