The Central Bank of Nigeria has released data showing that in July and August of 2023, the Federal Government recorded a fiscal deficit of N1.54 trillion.
The Punch reported that the Federal Government reported N818.53 billion and N726.85 billion in fiscal deficits in July and August, respectively, according to CBN’s monthly economic report for August.
A part of the report stated, “The FGN’s provisional fiscal deficit shrank to N726.85 billion, down 11.0% and 19.1% from the previous month’s level and the appropriate monthly target, respectively. The decrease in interest payments over the period was reflected in the smaller deficit.
The CBN reported that increased oil earnings led to a rise in gross federation account revenue.
It stated that the federation account receipts, at N1.69tn, were 1.7% higher than the previous month’s level but 3.9% less than the benchmark of N1.76tn.
The Nigerian National Petroleum Company Limited’s 2023 interim dividend payment and higher collections from production sharing contracts, bolstered by customs and excise duty receipts and FGN independent revenue, were the main drivers of the improved performance.
It said that in terms of composition, non-oil revenue continued to be the majority, making up 81.5 percent, with oil revenue making up the remaining 18.5%.
Oil revenue, at N314.38 billion, was 27.0% more than it was in July 2023 thanks to increased PSC receipts and NNPCL dividends. However, it fell short by 60.9% of the N803.63 billion target.
With N1.38 trillion in non-oil revenue, it was 2.7% less than in July 2023, but it still beat the monthly goal by 43.8%, thanks to strong performance in VAT, CIT, and customs and excise taxes.
The progression demonstrated enhanced tax management, heightened economic activity, and seasonality in tax filings.
After statutory deductions and transfers, the Federal Account Allocation Committee reportedly distributed a net balance of N966.11 billion among the three levels of government, according to the CBN.
The net balance was distributed to the federal, state, and local governments as follows: N374.49 billion, N310.68 billion, and N229.41bn, respectively, while the balance of N51.54bn was allocated to the 13 per cent Derivation Fund for Oil-Producing States.
While net disbursement in August 2023 was 11.4% below the monthly target, it was 6.5% higher than in July 2023.
