Data from the Central Bank of Nigeria has shown that the deficit spending by the Federal Government fell by 21 per cent, Month-on-Month.
This is a drop to N530 billion in October last year from N670.7 billion in September, driven by a decline in interest payments on domestic debts.
Meanwhile, revenue into the Federation Account rose by 7.0 per cent, MoM to N1.178 trillion in October 2022, buoyed by the surge in international crude oil prices.
CBN disclosed this in its October 2022 Economic Report saying that the decline in FG’s deficit spending was occasioned by a 13.1 per cent, MoM, the decline in aggregate expenditure for the month due to a fall in interest payment on domestic loans.
The decline in expenditure cancelled the impact of 3.7 per cent, MoM, a fall in FG’s retained revenue for the month, a development caused by a fall in FG’s independent revenue.
The report said: “The FGN Retained Revenue decreased due, largely, to a fall in the FGN Independent Revenue. At N547.85 billion, the provisional retained revenue of the FGN was below the preceding month and the proportionate budget by 3.7 per cent and 34.1 per cent, respectively.
“Driven by the decline in domestic interest payment, the provisional aggregate expenditure of the FGN fell by 13.1 per cent and 25.3 per cent, relative to September 2022 and the monthly target, respectively. The provisional aggregate expenditure of the FGN amounted to N1.078 trillion billion in the review period.
“A breakdown of the expenditure revealed that recurrent expenditure and capital expenditure accounted for 96.2 per cent and 3.8 per cent of total expenditure, respectively.
“The estimated overall fiscal deficit of the FGN narrowed in October 2022. At N530.87 billion, the provisional fiscal deficits of the FGN were reduced by 21.0 per cent and 13.3 per cent compared with the levels in the preceding month and the budget benchmark, respectively.
“Receipts into the Federation Account increased in October 2022, as a result of a significant boost in oil revenue. Provisional data shows that gross federation receipts at N1.178 billion exceeded the level in September 2022 by 7.0 per cent, but below the target of N1.58 trillion billion by 25.4 per cent.
“The rise in revenue was attributed to the surge in international crude oil prices. In terms of contribution, non-oil revenue remained dominant, constituting 54.2 per cent, while oil revenue accounted for 45.8 per cent.
“Oil revenue, at N540.31 billion, outperformed receipts in the preceding month by 100.8 per cent, driven, largely, by the 103.1 per cent rise in collections from Petroleum Profit Tax and Royalties.
“However, at N638.33 billion, non-oil receipts were below the preceding month by 23.3 per cent, and fell short of the monthly target by 19.1 per cent.”