The Federal Government of Nigeria has recorded a N485.51bn fiscal deficit in January 2021 according to statistics obtained from the Central Bank of Nigeria.
According to the monthly economic report for January released by the apex bank, the low revenue performance in January was due to the decline in non-oil receipts.
This is following the lingering effects of the COVID-19 pandemic on business activities and the resultant shortfall in tax revenues.
“Federally collected revenue in January 2021 was N807.54bn.
“This was 4.6 per cent below the provisional budget benchmark and 12.8 percent lower than the collection in the corresponding period of 2020.
“Oil and non-oil revenue constituted 45.4 percent and 54.6 per cent of the total collection respectively. The modest rebound in crude oil prices in the preceding three months enhanced the contribution of oil revenue to total revenue, relative to the budget benchmark.
“Non-oil revenue sources underperformed, owing to the shortfalls in collections from VAT, corporate tax, and FGN independent revenue sources.
“Retained revenue of the Federal Government of Nigeria was lower-than-trend due to the lingering effects of the COVID-19 pandemic.
“At N285.26bn, FGN’s retained revenue fell short of its programmed benchmark and collections in January 2020, by 41.3 per cent and 7.5 per cent respectively.
“In contrast, the provisional aggregate expenditure of the FGN rose from N717.6bn in December 2020 to N770.77bn in January, but remained 14.4 per cent below the monthly target of N900.88bn.
“Fiscal operations of the FGN in January 2021 resulted in a tentative overall deficit of N485.51bn”, the report reads.
The report said that total public debt outstanding of the FGN as of the end-September 2020, stood at N28.03tn, with domestic and external debts accounting for 56.5 per cent and 43.5 per cent, respectively.
However, the report added that the continued spread of the COVID–19 pandemic weakened global economic recovery leading to a decline in foreign exchange inflow into the economy in the month under review.