Nigeria nets budget deficits of N1.37 trln, finance through local borrowing
Nigeria recorded a total budget deficit of N1.37 trillion, representing 3.87 percent of the country’s GDP at the end of the First quarter, the ministry of finance has said.
The ministry in its 2020 First Quarter Budget Implementation Report stated that the deficit was funded through N560 billion borrowed from the domestic source as other sources of financing the budget did not materialise, leaving a gap of ₦817.98 billion net deficit financing for the period.
The report stated that gross oil revenue in the first quarter of 2020 stood at ₦1.280 trillion, representing a
₦522.42 billion (68.89 percent) increase above ₦758.34 billion quarterly projection in the 2020 budget.
“The performance in the first quarter of 2020 was however below the corresponding level in the same period of 2019,” the report stated.
“The high performance as against the quarterly estimate can be ascribed to the cutting down of budget oil benchmark price and production/lifting due to low price and demand at the international market during the period.
“The aggregate gross non-oil revenue for the same period revealed a decrease from the quarterly budget estimate but an increase of ₦43.83 billion (5.55 percent) above the corresponding figure recorded in 2019,” the finance ministry said.