The Federal Government’s deficit spending surged by 28% year-on-year to N12.1 trillion in the first ten months of 2024, exceeding the 2024 budget deficit target of N9.8 trillion by 31%.
Data from the Central Bank of Nigeria’s (CBN) Monthly Economic Reports revealed that despite a 36% year-on-year increase in federal revenue during the period, spending outpaced earnings significantly.
In Q1 2024, deficit spending stood at N4.18 trillion, rising slightly by 1.9% to N4.26 trillion in Q2. However, it dropped by 23% to N3.3 trillion in Q3, with October recording N361.89 billion in deficit spending.
The rise in federal revenue was driven by a 54.5% year-on-year increase in inflows to the Federation Account, reaching N20.214 trillion in the ten-month period, up from N13.079 trillion in 2023.
Revenue climbed from N4.973 trillion in Q1 to N6.388 trillion in Q2, peaking at N6.865 trillion in Q3, before falling by 7.9% month-on-month to N1.988 trillion in October.
Expenditure trends revealed a 17.8% quarter-on-quarter increase to N6.7 trillion in Q2, followed by a 16.4% decline to N5.6 trillion in Q3. However, in October, spending rose by 28.4% month-on-month to N1.83 trillion.
According to the CBN’s October Economic Report, from the N1.988 trillion federally collected revenue, N1.298 trillion was distributed among the three tiers of government. The Federal Government received N424.87 billion, state governments N450.96 billion, local governments N332.63 billion, and oil-producing states N90.42 billion through the 13% Derivation Fund.
Despite the revenue boost, the government continues to face fiscal pressures, with deficit spending remaining significantly above projections.
