The Federal Government’s deficit spending surged by 28% year-on-year (YoY) to ₦12.1 trillion in the first ten months of 2024, exceeding the annual budget deficit target of ₦9.8 trillion by a staggering 31%.
This was revealed in the Central Bank of Nigeria (CBN)’s Monthly Economic Reports, which also highlighted a 36% YoY increase in revenue during the same period.
Deficit Spending Trends:
Q1 2024: ₦4.18 trillion
Q2 2024: ₦4.26 trillion (up 1.9% quarter-on-quarter, QoQ)
Q3 2024: ₦3.3 trillion (down 23% QoQ)
October 2024: ₦361.89 billion
Despite the revenue boost, with receipts rising 54.5% YoY to ₦20.214 trillion, the deficit persisted, driven by higher expenditures and fluctuating spending patterns.
Revenue Trends:
Q1 2024: ₦4.973 trillion
Q2 2024: ₦6.388 trillion (up 28.4% QoQ)
Q3 2024: ₦6.865 trillion (up 7.5% QoQ)
October 2024: ₦1.988 trillion (down 7.9% month-on-month, MoM)
The Federal Government’s retained revenue climbed to ₦6.86 trillion in the first ten months of 2024, a 36.6% YoY increase from ₦5.02 trillion in 2023.
Expenditure Patterns:
Q1 2024: ₦5.6 trillion
Q2 2024: ₦6.7 trillion (up 17.8% QoQ)
Q3 2024: ₦5.6 trillion (down 16.4% QoQ)
October 2024: ₦1.83 trillion (up 28.4% MoM)
The rise in October spending was attributed to higher capital expenditure, which increased by ₦463.49 billion compared to September but fell short of the ₦2.4 trillion target