The Federal Government recorded N1.54tn fiscal deficit in July and August 2023, figures from the Central Bank of Nigeria have revealed. According to CBN’s monthly economic report for August, the Federal Government recorded N818.53bn and N726.85bn fiscal deficits in July and August respectively.
The report read in part, “The provisional fiscal deficit of the FGN, at N726.85bn, contracted by 11.0 percent and 19.1 percent, relative to the level in the preceding month and the proportionate target for the month, respectively. The lower deficit reflected decline in interest payments during the period.”
The CBN said there was an uptick in gross federation account revenue following improvement in oil earnings. At N1.69tn, it said the federation account receipts exceeded the level in the preceding month by 1.7 percent, but below the benchmark of N1.76tn by 3.9 percent.
The improved performance reflected increased collections from production sharing contracts, and the 2023 interim dividend payment by the Nigerian National Petroleum Company Limited; supported by higher receipts from customs & excise duties and FGN independent revenue. In terms of composition, it stated, non-oil revenue remained dominant, accounting for 81.5 percent, while oil revenue made up the balance of 18.5 percent.