Nigeria’s fiscal deficit hits N2.23trn in Q4 of 2021 – CBN

Federal government’s fiscal deficit hits a whopping N2.23 trillion in the fourth quarter of 2021, according to the Central Bank of Nigeria economic report for the last quarter of 2021.

The report said the 12 per cent contraction in fiscal deficit followed a decline in aggregate expenditure in the fourth quarter of 2021.

“Following a decline in aggregate expenditure in the fourth quarter of 2021, the fiscal deficit of the FGN contracted by 12.0 per cent to N2,232.33 trillion, relative to the preceding quarter,” the report states.

“Non-oil revenue maintained its dominance, accounting for 60.8 per cent of the total collections, while oil revenue constituted the balance of 39.2 per cent.

“Provisional federal government of Nigeria (FGN) retained revenue, at N1,265.34 trillion, declined by 36.6 per cent and 3.2 per cent, relative to the budget benchmark and the preceding quarter, respectively, reflecting the persistent revenue challenge over the past two years.”

The report added that the federation receipts in the fourth quarter fell below benchmark due to the shortfalls in oil revenue.

“The shortfalls were largely the result of poor performances in some oil revenue components. Non-oil maintained its dominance of gross federation receipts in the period, accounting for 60.8 per cent of the total collections, while oil revenue constituted the balance of 39.2 per cent,” the report added.

“This is a deviation from the 51:49 non-oil versus oil revenue mix, projected in the 2021 budget.