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HomeTop NewsNigeria posts N593 bln deficit in Aug as oil output declines

Nigeria posts N593 bln deficit in Aug as oil output declines

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Nigeria posted a budget deficit of N593 billion in August this year, seven percent more than N554.21 billion recorded in the previous month, according to the economic report of the Central Bank of Nigeria (CBN).

The deficits was driven by 4.2 percent,   month-on-month  increase in capital expenditure which moderated the impact of a 1.7 percent,  increase in government revenue as well as 10.8 percent drop in debt service in August

The CBN monthly economic report for August showed that Nigeria recorded N639.47 billion as  Retained revenue in August, representing 1.7 percent month-on-month MoM increase from N629.03 billion in July.

Aggregate expenditure also rose 4.2 percent, MoM, to N1.23 trillion from N1.18 trillion in July.

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The increase in aggregate expenditure was driven by a 4.2 percent, MoM, increase in Capital expenditure which rose to N281.78 billion from N179.27 billion in July.

However,  debt service fell 10.8 percent, MoM, to N436.60 billion from N489.80 billion in July.

“The overall fiscal balance recorded a deficit on account of higher capital expenditure. At N593.09 billion, the provisional fiscal deficit of the FGN rose by 7.0 percent when compared with the level in July 2022 but declined by 3.2 percent relative to the monthly budget of N612.52 billion”, the CBN stated.

Meanwhile, revenue into the Federation Account fell by 9.8 percent, MoM in August due to fall in FGN Independent revenue.

“Gross federation receipts at N1.31 trillion was below the target of N1.58 trillion by 17.0 percent. Relative to the collection in July 2022, non-oil receipts at N826.90 billion, weakened by 9.8 percent, due largely to the decline in FGN Independent Revenue,” the CCBN stated in the report.

“However, in terms of contribution to total revenue, non-oil revenue remained dominant, constituting 63.0 percent of the total, while oil revenue accounted for the balance of 37.0 percent.

“Oil revenue, at N485.07 billion, exceeded its level in the preceding month by 1.4 percent, following a 17.7 percent rise in Petroleum Profit Tax (PPT), and Royalties receipts. In contrast, it was 38.7 percent short of the monthly budgetary target

Domestic crude oil production and export fell, month-on-month, to 1.10 mbpd and 0.65 mbpd, respectively, in August 2022.

“At that level, crude oil production and export was 2.7 percent and 4.4 percent, lower relative to the level in the preceding month. Nigeria’s production level remained below the OPEC quota of 1.826 mbpd by 0.726 mbpd”’ the report stated..

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