FG Deficit Reached N824 Billion in April, Says CBN.
The Federal Government’s fiscal deficit increased by 0.1 percent month-on-month, reaching N824.79 billion in April, up from N823.91 billion in March, according to the Central Bank of Nigeria’s April 2024 Monthly Economic Report. This deficit was 7.92 percent higher than the budgeted N764.19 billion for the period.
A fiscal deficit occurs when a government’s expenditures exceed its revenues. The report, released on Thursday, highlighted that consumer credit outstanding saw a significant decline of 53.83 percent, falling to N3.8 trillion at the end of April 2024 compared to the previous month.
The Central Bank attributed the increase in the fiscal deficit to a 0.55 percent month-on-month drop in retained revenue, which fell to N419.91 billion in April from N422.23 billion in March. This decline in revenue was primarily due to lower receipts from exchange gains.
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The report stated, “The fiscal operations of the Federal Government of Nigeria in April led to an expansion in the fiscal deficit.” Provisional data indicated that both primary and overall deficits rose to N260.98 billion and N824.79 billion, respectively, compared to N249.43 billion and N823.91 billion in the previous month.
The expanded deficit was largely a result of the sharper decline in retained revenue. Additionally, the report noted that FGN retained revenue decreased during the review period due to reduced exchange gain receipts.
In related news, the Federal Government has increased Nigerian passport fees, and there are ongoing investments of crime proceeds aimed at strengthening the economy. A public hearing on community policing is also being held by the government.
Lastly, the apex bank reported that government expenditure in April decreased month-on-month by 0.16 percent to N1.246 trillion from N1.244 trillion in March, primarily due to a reduction in capital spending. Provisional data indicated that total expenditure was slightly below the previous month’s level.
