The Federal Government recorded a 52.9 per cent, year-on-year (YoY) increase in deficit spending to N12.86 trillion in 2023 from N8.41 trillion in 2022.
The rise in deficit spending was driven by a 40.6 per cent rise in expenditure which moderated the impact of a 20 per cent increase in revenue during the review period.
Vanguard analysis of data on the fiscal activities of the FG contained in the Central Bank of Nigeria (CBN) Quarterly Economic Statistical Bulletin Tables for 2023 showed that the FG recorded retained revenue of N5.96 trillion in 2023, up by 20 per cent from N4.97 trillion in 2022.
Following the same trend, expenditure rose to N18.83 trillion in 2023 representing 20.5 per cent, YoY increase from N13.39 trillion recorded in 2022. The FG recorded the highest deficit spending of N1.68 trillion in March 2023. On January 3, 2023, Former President Muhammadu Buhari signed the 2023 Appropriation Bill of N21.83 trillion into law. The budget was based on N10.49 trillion, revenue and an N11.34 trillion deficit. The deficit spending as shown in the CBN’s data showed that the actual deficit spending for the year exceeded the budget deficit of 13 percent.
