Economy: Nigeria hits N1.09tn budget deficit for Q2

The Nigerian economy seems still in the low as its Central Bank Economic Report for the Second Quarter 2016 indicates a budget deficit of well over N1 trillion naira in the period.

 

The CBN quarterly report released on Monday showed that total revenue for the quarter was 51.3 per cent lower that estimates for the period, and also 8.6 per cent lower than earnings for first quarter of the year.

 

The report stated that “Federal Government retained revenue was N677.88 billion, while total expenditure was N1,768.85 billion, resulting in an estimated deficit of N1,090.96 billion in the second quarter of 2016, compared with the proportionate quarterly budget deficit of N555.49 billion.”

 

It also stated that “At N1,159.05 billion, total federally-collected revenue was 51.3 and 8.6 per cent lower than the quarterly budget estimate and the preceding quarter’s receipts, respectively”

 

According to the apex bank, “At N537.19 billion or 46.3 per cent of the total, gross oil receipt was lower than both the provisional quarterly budget and the receipts in the preceding quarter. The development was attributed to the continued fall in receipts from crude oil/gas exports arising from persistent low price of crude oil and incidences of shut-ins and shut-downs at some NNPC terminals, owing to pipeline vandalism.

 

Read also: Ease of Doing Business: How we’ll put Nigeria among top 100 countries –Buhari 

 

“Non-oil receipts, at N621.86 billion or 53.7 per cent of the total, was above the level in the preceding quarter by 3.2 per cent, but was significantly lower than the proportionate quarterly budget.”

 

Provisional data further showed that foreign exchange inflow and outflow through the CBN amounted to US$5.89 billion and US$6.09 billion, respectively, resulting in a net outflow of US$0.20 billion.

 

“Foreign exchange sales by the CBN to the authorized dealers amounted to US$4.31 billion. The average exchange rate of the naira vis-à-vis the US dollar at the inter-bank was N209.13/US$”, the report noted.

 

There is however, an upside as Agricultural sector activities increased due to well distributed rainfall in most parts of the country. “Major activity in the South was harvesting of maize and yam, while planting and off-season harvesting dominated in the North.

 

“In the livestock sub-sector, farmers engaged in the breeding of poultry and migration of cattle from North to South in search of green pastures. The end-period inflation rate on year-on-year and 12-month moving average basis for the second quarter of 2016, was 16.5 per cent and 11.4 per cent, respectively,” the report said.

 

 

 

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