The Federal Government of Nigeria recorded a fiscal deficit of N3.01 trillion in first five months of 2021, reflecting the country’s worsening finances.
Figures obtained from the Medium Term Expenditure Framework/Fiscal Strategy draft for 2022-2024 released on Thursday showed the country recorded aggregate revenue of N1.84 trillion but spent N4.86 trillion.
According to the document, revenue is N1.48 billion, or 44.6 percent, lower than the expected N3.32 trillion, while spending was N804.37 billion, or 14.2 percent, lower than the N5.66 trillion in the 2021 budget.
“This is yet another sign of the government’s ailing finances and again reinforce the need to attract private capital into the country,”
“If you look at our debt, you’ll notice that it’s becoming more every year. It is important that we address instability in the nation and allow investment to pour in; it is clear that we cannot rely just on oil revenue,” he added.
Ripples Nigeria further disaggregation of the numbers showed on the revenue side; oil revenues was N289.61 billion (which represents 50% performance) while non oil tax revenues totaled N618.76 trillion (99.7% of prorata).
Also the document showed Companies Income Tax (CIT) and Value Added Tax (VAT) collections were ahead of the budget targets with N290.90 billion and N123.85 billion, representing 102% and 125% respectively of the prorata targets for the period
Customs collections were N204.0 billion (86% of target ). Other revenues amounted to N762.70 billion, of which Independent revenues were N487.01 billion,” the report added.
On the expenditure N1.80 trillion was for debt service (37% of FGN expenditures); and 1.50 trillion for Personnel cost, including Pensions (31% of FGN revenues).
This implies that out of every N100 Nigeria has generated in the previous five months, N74 has been spent on personnel costs.
Also, the report showed N973.13 billion was released for capital expenditure during the period.