The Federal Government recorded a 29 percent year-on-year (YoY) decline in deficit spending to N2.83 trillion deficit in the first quarter of 2024 (Q1’24) from N3.99 trillion recorded in same period of last year, Q1’23.
The Central Bank of Nigeria’s, CBN, disclosed this in its Statistical Bulletin for Q1’24. Vanguard analysis showed that the deficit fall was driven by a 20.5 percent YoY rise in revenue and a 15.8 percent YoY decline in expenditures.
According to the CBN, FG’s expenditure fell at N4.59 trillion in Q1’24, down by 15.8 percent from N5.45 trillion in Q1’23. However, revenue grew by 20.5 percent, YoY to N1.76 trillion in Q1’24 from N1.46 trillion in Q1’23.
In its Macro Economy Outlook for 2024, CBN noted that the FGN’s fiscal operations in 2024 are anticipated to result in a projected deficit of 3.9 percent of GDP, which will be financed through new borrowings, asset sales, privatisation proceeds, and multilateral/bilateral project-tied loans.
The apex bank also projected FG expenditures, including GOEs and project-tied loans, to reach N28.77 trillion by 2024.
