FG’s deficit spending falls 12% to N2.3trn in Q3’23

The Federal Government (FG) recorded a 12 percent quarter-on-quarter (QoQ) decline in deficit spending to N2.34 trillion in the third quarter of 2023 (Q3’23). The figure was N2.66 trillion in the corresponding period of 2022, Q2’23.

The decline was as a result of a 3.2 percent fall in expenditure against a 13 percent increase in revenue during the period.

Details of the Q3’23 Economic Report released by the Central Bank of Nigeria (CBN) showed that the FG recorded N1.69 trillion revenue in Q3’23, up from N1.5 trillion in Q2’23.

However, expenditure fell to N4 trillion during the period, representing 3.2 per cent, QoQ, decline from N4.7 trillion recorded in Q2’23 due to lower debt service.

The CBN report stated: “Federal Government of Nigeria, FGN retained revenue improved, largely, on account of higher receipts from VAT Pool Account and exchange gain.

“At N1.69 trillion, FGN retained revenue was above collections in the preceding quarter by 12.1 per cent, but fell short of the target of N2.76 trillion by 38.7 per cent.

“At N4,040.18 billion, spending was N135.17 billion or 3.2 per cent, below the level in the preceding quarter and N1,416.6 billion or 26.0 per cent short of the target.

“Recurrent expenditure, at 69.1 percent continued to dominate FGN spending, compared with the 25.8 and 5.1 per cent in capital outlay, and transfers, respectively.

“The fiscal operations of the FGN in Q3’23 resulted in a reduction of the overall deficit.

“Provisional fiscal deficit of the FGN at N2.34 billion, narrowed by 11.9 percent and 12.9 per cent, relative to the level in Q2’23 and the target, respectively.

“The decline in the deficit was a result of a disproportionate fall in FGN expenditure in the review quarter.”