According to an economic report of the Central Bank of Nigeria (CBN), the Federal Government recorded a fiscal deficit of N405.28bn in August.
The report said in August, there was a significant decline in independent revenue sources which reflected lower remittances from ministries, departments, and agencies (MDAs) and government business interests
The report said, “Independent revenue fell by 52.2% in August which led to a 10.4% decline in government’s retained revenue from N420.2bn in July.”
The CBN noted “that statutory receipt from the federation account rose by 6.2% to N299bn in August, significantly impacting the government’s retained revenue during the review period.”
On expenditure, CBN noted that “August was a positive month as aggregate expenditure fell by 18.8% from N962.1bn recorded in July due to a reduction in overhead cost and low capital expenditure.”
“Although recurrent expenditure shrunk by 18.3% to N683.46bn following a 48.9% decline in overhead cost, it maintained its dominance in total spending.
“Recurrent expenditure accounted for 87.4% of total spending in August, while capital expenditure and transfers constituted 7.3% and 5.3%, respectively,” the report said.
The CBN said on trade performance, Nigeria recorded a higher trade deficit of $820m in August when compared with $340m in July.
It said, “Aggregate export receipts decreased by 4.7% to $4.24bn in the review period, compared with $4.45bn in the preceding period, owing to lower receipts from crude oil export.
“Merchandise import grew by 5.5% to $5.06bn in August, from $4.80bn in the preceding month, reflecting increased domestic demand for both petroleum and non-oil-related products, occasioned by an uptick in domestic economic activities.”