FG loses N797b projected revenue in three months

The Federal Government has lost about N796.77 billion from its revenue projections in the third quarter of 2018, according to data compiled by The Guardian.The development shows that the revenue generation challenges of the Federal Government and their effect on budget implementation have not abated. It also raises concerns that the 2018 budget financing might suffer huge deficits with attendant borrowing costs and that the country might even remain in deficit until 2023.

An economic report analysis by the Central Bank of Nigeria (CBN) showed that the N2.52 trillion revenue collected in the third quarter of 2018 was lower than the proportionate quarterly budget estimate of N3.32 trillion, being a N796.77 billion shortfall.

While the decline has been attributed to a shortfall in both oil and non-oil revenue components in the review period by the CBN, the realised amount rose above the receipts in the preceding quarter by 8.9 per cent.

But the chief executive officer of Cowry Asset Management Limited, Johnson Chukwu, said the implication of the development is a direct ballooning of the debt profile and further pressure on debt-to-revenue ratio and optional implementation of capital expenditure.

The Guardian, November 22, 2018

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