Post Views: 101 Latest data by the Central Bank of Nigeria (CBN) showed that the fiscal operations of the Federal Government for the month of October ...
Latest data by the Central Bank of Nigeria (CBN) showed that the fiscal operations of the Federal Government for the month of October suffered an estimated total deficit of N378.98bn, representing a significant 137.06% rise over the N159.87bn anticipated in the budget for the month.
According to the CBN’s Economic Report for the month, gross federally-collected revenue fell to N894.09bn, 28.2% below the N1.246tr budget estimate for the period; and 0.9% less than the previous month’s revenue.
The report attributed the decline, relative to the monthly budget estimate to (the) shortfall in both oil and non-oil revenue after oil receipts representing 64.6% of total stood at N577.3bn. It was below the monthly budget estimate of N798.83bn by 27.7%, even as it exceeded the N467.58bn earned in September by 23.5%.
“The decrease in oil revenue relative to the monthly budget estimate was attributed to shut-ins and shut-downs at some NNPC (Nigerian National Petroleum Corporation) terminals due to pipeline leakages and maintenance activities,” the report noted.
Also, the non-oil receipts for the month stood at N316.79bn or 35.4% of total revenue, which was below the monthly budget estimate of N447.24bn or 29.2%, and the preceding month’s N434.52bn or 27.1%.
The report blamed the drop in collection on the decline in revenue from corporate tax, Value Added Tax, Education Tax, and Federal Government’s independent revenue.
In all, the total allocation to the three tiers of government in October 2019 stood at N673.01bn, 38.3% lower than the monthly budget estimate of N1.09tr and the preceding month’s N676.9bn by 0.6%.
The Federal Government received an estimated N316.91bn as retained revenue for the period, 55.1% below the monthly budget estimate of N705.44bn. A breakdown showed that Federation.
Total federal expenditure for the period dropped from the N865.31bn monthly budget estimate by 19.6% to N695.89bn, just as it was also below the N949.56bn recorded in the preceding month by 26.7%.
A breakdown of the federal government’s expenditure for the month under review, according to the CBN, showed that recurrent gulped 57%, leaving 37.3% for capital spending, while transfers constituted 5.7%.
A further breakdown of the recurrent expenditure showed that non-debt obligation accounted for 76.8%, and debt service payments, 23.2%.
Within the period also, cumulative foreign exchange inflow into, and outflow from, the Nigerian economy stood at $10.89bn and $5.14bn, respectively, resulting in a net inflow of $5.75bn.
Total foreign exchange sales by the CBN to the authorised dealers for the period stood at $2.79bn, compared with $2.8bn in the preceding month, just as gross external reserves dropped to $39.6bn, compared with $40.7bn at the end-September 2019.