The Central Bank of Nigeria (CBN) said in a report that federal government’s expenditure overshot its revenue by N1.43 trillion in the first quarter 2023.
The CBN disclosed this in its Economic Report for Q1, 2023.
The report stated that a total of $17.18 billion was attracted into the Nigerian economy in Q1 2023, representing an increase of 7.5 per cent compared to $14.62 billion in the preceding quarter.
“The fiscal operations of the FGN in 2023, Q1, resulted in a deficit. At N1.43 trillion, the provisional fiscal deficit of the FGN was 9.6 per cent higher than the level in the preceding quarter but 22.1 per cent below the target.”
The report stated that the fiscal performance during the period in review was impaired by low oil revenue realisation.
Consequently, it said the retained revenue of the government fell by 10.7 per cent, relative to 2022, Q4, and was 46.1 per cent below the quarterly target.
It further disclosed that the federal government’s aggregate expenditure also declined by 1.3 and 36.0 per cent, relative to the preceding quarter and the quarterly target, respectively.
“Thus, the FGN overall deficit widened relative to 2022, Q4, but narrowed by 22.1 per cent when compared with the proportionate budget. Consolidated public debt, as at end-December 2022, stood at N46.25tn (or 22.8 per cent of GDP),” it added.
At N3.48 trillion, the CBN report said, gross federation revenue fell below the levels in 2022, Q4 and the budget benchmark by 0.4 and 26.6 per cent, respectively.
The report further stated that foreign exchange inflow through the CBN increased to $7.17 billion, compared to $6.21 billion in the preceding quarter, while inflows through autonomous sources increased to $10.08 billion, from $8.41 billion in Q4.
On the other hand, forex outflow through the economy increased by 12.8 per cent, to $9.98 billion, compared to $8.85 billion in Q4.
Outflow through the central bank increased by 17.9 per cent, to $8.86 billion, compared to $7.51 billion in the preceding quarter, while autonomous outflow fell by 16.2 per cent, to $1.12 billion, from $1.34 billion in the preceding quarter.
As a result, net FX inflow through the economy increased by 24.7 per cent to $7.20 billion from $5.78 billion in the preceding quarter while net inflow through autonomous sources rose to $8.89 billion compared to $7.08 billion in the preceding quarter.
However, a net outflow of $1.69 billion was recorded through the apex bank, compared to $1.30 billion in Q4.
Nonetheless, the federal government’s provisional fiscal deficit was 9.6 per cent higher than N1.31 trillion recorded in the preceding quarter but 22.1 per cent below the target.
