Deficit spending by the Federal Government rose by 28 per cent, Year-On-Year, YoY to N12.1 trillion in the first ten months of 2024, from N9.8 trillion recorded in the same period of 2023.
Thus, the Federal Government, in the first ten months, surpassed its Budget 2024 deficit target of N9.8 trillion by 31 per cent. The increase in deficit spending was in spite 36 per cent YoY increase in FG’s revenue during the period.
The increase in FG’s revenue was driven by a 54.5 per cent YoY increase in revenue to the Federation Account during the 10-month period.
Vanguard analysis of data in the Central Bank of Nigeria, CBN, Monthly Economic Reports showed that revenue to the Federation Account rose to N20.214 trillion in the 10 months, 10m’24, from N13.079 trillion in the same period in 2023, 10m’23.
From N4.973 trillion in the first quarter, Q1’24, revenue to the Federation Account rose quarter-on-quarter, QoQ, to N6.388 trillion in Q2’24. It rose further by 7.5 per cent QoQ to N6.865 trillion in Q3’24.
However, in October, revenue to the Federation Account fell Month-on-Month, MoM by 7.9 per cent to N1.988 trillion.
