The Central Bank of Nigeria (CBN), at the weekend released its Economic Report for the fourth quarter ended December 31, 2018, showing that the Federal Government’s expenditure could not be significantly cut, revenue dropped for the period, after oil and non-oil revenue underperformed.
It earned N946.9 billion in non-oil revenue was below the proportionate quarterly budget estimate of N1.4 trillion and the level in the preceding quarter by 32.4 percent and 17 percent, respectively.
The fiscal operations of the Federal Government resulted in an estimated deficit of N910.41 billion, an increase of N421.79 billion, or 86.31 percent over the proportionate quarterly budget deficit of N488.62 billion.
Specifically, the report showed that federally-collected revenue (total collections before distribution among the three-tiers of government) at N2.412 trillion in the review period came 27.4 percent below the N3.321 trillion. It also was 4.8 percent lower.
Of the total accruals, the Federal Government retained N916.44 billion, as against its N1.826 trillion expenditure, resulting in an estimated deficit of N910.41 billion during the period.
The expenditure was however lower than the proportionate quarterly budget estimate of N2.376 billion by 23.1 percent and that of the preceding quarter by 3.4 percent.
A breakdown of the total expenditure, the CBN added, “showed that the recurrent component accounted for 87.8 percent, while capital and statutory transfers accounted for 5.9 and 6.3 percent, respectively.
The bulk of recurrent expenditure went into non-debt obligations, which gulped 53.8 percent, while debt service payments accounted for the remaining 46.2 percent.
Specifically, the apex bank put gross oil receipt at N1.465 trillion or 60.7 percent of total revenue, which was below the proportionate quarterly budget estimate by 23.7 percent, but higher than receipts in the third quarter of 2018 by 5.1 percent.
“The lower non-oil revenue relative to the proportionate quarterly budget estimate was due to the shortfalls in receipts from Federal Government Independent Revenue and VAT in the review period.