The Federal Government’s deficit spending has risen by 28% year-on-year, reaching N12.1 trillion in the first ten months of 2024. This marks an increase from N9.8 trillion recorded in the same period of 2023, according to the Central Bank of Nigeria’s monthly economic reports. Despite a 36% year-on-year rise in government revenue, the deficit surpassed the 2024 target by 31%.
Revenue to the Federation Account rose significantly by 54.5% year-on-year to N20.2 trillion in the first ten months of 2024. This growth was primarily driven by a sharp increase in collections, which rose from N13.1 trillion in the same period last year. However, October saw a slight month-on-month decline of 7.9%, with the account receiving N1.99 trillion.
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Despite the increase in revenue, the government’s deficit spending remained high. In the first quarter of 2024, it stood at N4.18 trillion, growing by 1.9% to N4.26 trillion in the second quarter. Deficit spending fell by 23% in the third quarter to N3.3 trillion, and in October 2024, it stood at N361.9 billion.
While government revenue showed strong growth, the higher-than-expected deficit highlights ongoing challenges in balancing expenditure against income. The rise in revenue was mainly from higher allocations to the Federation Account, but overall spending continues to outpace income.
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