President Buhari

The Federal Government’s fiscal deficit rose from N491.28bn in March to N643.09bn in April, according to figures obtained from the Central Bank of Nigeria. The banking regulator’s April economic report stated that, “The 14.3 per cent increase in FGN retained revenue was offset by the 23.8 per cent rise in public spending, leading to an expansion of the fiscal deficit. At N643.09bn, the provisional fiscal deficit of the FGN was 30.9 per cent above the level in the preceding month.” According to the report, fiscal conditions remained challenging in April 2022 despite higher revenue outcomes. Provisional federally collected revenue rose by 66.3 per cent relative to the level in March but fell short of the budget by 14.7 per cent. FGN retained revenue increased by 14.3 per cent but was offset by a 23.8 per cent rise in total expenditure, resulting in a 30.9 per cent expansion in the overall deficit. The debt profile of the FGN remained elevated, as government incurred new borrowings to part-finance the deficit in the 2022 budget. However, the debt stock was within the FGN’s medium-term debt strategy. According to the report, provisional federally collected revenue performance was boosted by enhanced oil receipts, improved economic activities and the seasonality effect associated with income tax receipts.

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