The Central Bank of Nigeria (CBN), in its monthly economic report for October, disclosed that the Government recorded a fiscal deficit of N451.22bn in October 2020.
In the report which was released on Tuesday, the apex bank said: “At N616.35bn, gross federally collected revenue in October 2020 was below the budget benchmark by 27.2 percent.
“It declined by 18.3 percent and 33 percent when compared with the level in the preceding month and the corresponding period of 2019 respectively.
“This was attributed to declines in both oil and non-oil revenue components.
“Federal Government retained revenue was N274.48bn in October 2020, indicating a drop of 6.6 percent and 52.8 per cent relative to the levels in the preceding month and corresponding period of 2019.
“Driven by the rise in personnel costs and capital releases, provisional aggregate expenditure rose to N725.7bn from N712.3bn in the preceding period.
“Consequently, estimated fiscal deficit in October widened to N451.22bn, from N418.5bn in September 2020.”
The report further noted that the “total federal government debt outstanding as at end-June 2020, was N31,008.64 billion; with domestic and external debt components accounting for 57.6 per cent and 42.4 per cent of the total debt stock, respectively.”
The CBN said the federally collected revenue in October 2020 was N616.35bn, indicating a shortfall of 27.2 percent relative to the N846.84bn budget benchmark. It attributed the shortfall to the slow pace of global economic recovery and the resurgence of COVID-19 cases in some European, Asian and Latin American countries, which depressed global demand and dampened crude oil prices.
The federally collected revenue also fell by 18.3 percent compared to the N729.14 billion recorded the previous month.
It was also was a reduction by 33 percent, when compared with the level recorded in the corresponding period of 2019.