Fiscal deficit climbed to N451.22bn in October – CBN

The Federal Government recorded a fiscal deficit of N 451. 22bn in October 2020.

The Central Bank of Nigeria disclosed this in its monthly economic report for October which was released on Tuesday.

Part of the report read , “ At N 616. 35bn, gross federally collected revenue in October 2020 was below the budget benchmark by 27. 2 per cent .

“ It declined by 18. 3 per cent and 33 per cent when compared with the level in the preceding month and the corresponding period of 2019 respectively .

“ This was attributed to declines in both oil and non -oil revenue components.

“ Federal Government retained revenue was N 274. 48bn in October 2020, indicating a drop of 6. 6 per cent and 52. 8 per cent relative to the levels in the preceding month and corresponding period of 2019.

“ Driven by the rise in personnel costs and capital releases , provisional aggregate expenditure rose to N 725. 7bn from N 712. 3bn in the preceding period .

“ Consequently, estimated fiscal deficit in October widened to N 451. 22bn, from N 418. 5bn in September 2020. ”

According to the report , the total Federal Government ’ s debt outstanding as of end of June 2020 was N 31. 01tn ; with domestic and external debt components accounting for 57. 6 per cent and 42. 4 per cent of the total debt stock respectively .
Due to the slow pace of global economic recovery and the resurgence of COVID – 19 cases in some European , Asian and Latin American countries , which depressed global demand and dampened crude oil prices, the federally collected revenue in October 2020 amounted to N 616. 35bn , reflecting a shortfall of 27. 2 per cent relative to the N 846. 84bn budget benchmark .

It also fell by 18. 3 per cent and 33 per cent compared with the amounts in the preceding month and the corresponding period of 2019 respectively .

Netting off deductions and transfers and accounting for additional revenue from exchange rate gain , excess oil and excess non -oil revenue sources, a net balance of N 616. 02bn was distributed among the three tiers of government .

Allocations to the three tiers of government fell in October 2020 due to the decline in distributable revenue by 5. 1 per cent, 8. 5 per cent and 0. 8 per cent, relative to the levels in the preceding month, corresponding period of 2019 and the budget benchmark.

Decline in receipts from Petroleum Profit Tax and royalties , was attributed to the decrease in oil revenue in October 2020.
Relative to the budget benchmark and the corresponding period of 2019, oil revenue fell by 41. 8 per cent and 50 per cent respectively .

Although at N 96. 53bn , domestic crude oil and gas sales rose substantially by 103. 6 per cent relative to receipts in September 2020, it was less than the collections in October 2019.

The value of crude oil and gas exports fell by 64. 8 per cent below its level in the corresponding period of 2019.