Nigeria records N405.28bn fiscal deficit in one month —CBN

The Central Bank of Nigeria (CBN) has provided details of how much the federal government spent and received in the month of August in its latest economic report published on its website.

According to the report, the Federal Government recorded a fiscal deficit of N405.28bn in August having spent N781.61 billion but generated N376.33bn.

The report also noted that in the month of August there was a significant decline in independent revenue sources and it reflected lower remittances from ministries, departments, and agencies, and government business interests

“Independent revenue fell by 52.2 percent in August which led to a 10.4 percent decline in government’s retained revenue from N420.2bn in July,” CBN said.

The CBN, however, noted that statutory receipt from the federation account rose by 6.2 percent to N299bn in August, significantly impacting the government’s retained revenue during the review period.

On expenditure, CBN noted August was a positive month as aggregate expenditure fell by 18.8 percent from N962.1bn recorded in July due to a reduction in overhead cost and low capital expenditure.

The report said, “Although recurrent expenditure shrunk by 18.3 percent to N683.46bn following a 48.9 percent decline in overhead cost, it maintained its dominance in total spending.

Read also: Nigeria records N3trn fiscal deficit in five months

“Recurrent expenditure accounted for 87.4 percent of total spending in August, while capital expenditure and transfers constituted 7.3 percent and 5.3 percent, respectively.”

On trade performance, the CBN said that Nigeria recorded a higher trade deficit of $820m in August when compared with $340m in July.

It said, “Aggregate export receipts decreased by 4.7 percent to $4.24bn in the review period, compared with $4.45bn in the preceding period, owing to lower receipts from crude oil export.

“Merchandise import grew by 5.5 percent to $5.06bn in August, from $4.80bn in the preceding month, reflecting increased domestic demand for both petroleum and non-oil-related products, occasioned by an uptick in domestic economic activities.”

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