Central Bank of Nigeria (CBN), in its monthly economic report for January, disclosed that the Government recorded a fiscal deficit of N485.51bn in January 2021.
In the report which was released on Friday, the apex bank attributed the low revenue performance in January to the decline in non-oil receipts following the lingering effects of the COVID-19 pandemic on business activities and the resultant shortfall in tax revenues.
Part of the report read, “Federally collected revenue in January 2021 was N807.54bn.
“This was 4.6 percent below the provisional budget benchmark and 12.8 percent lower than the collection in the corresponding period of 2020.
“Oil and non-oil revenue constituted 45.4 percent and 54.6 percent of the total collection respectively. The modest rebound in crude oil prices in the preceding three months enhanced the contribution of oil revenue to total revenue, relative to the budget benchmark.
“Non-oil revenue sources underperformed, owing to the shortfalls in collections from VAT, corporate tax, and FGN independent revenue sources.
“Retained revenue of the Federal Government of Nigeria was lower-than-trend due to the lingering effects of the COVID-19 pandemic.
“At N285.26bn, FGN’s retained revenue fell short of its programmed benchmark and collections in January 2020, by 41.3 per cent and 7.5 percent respectively.
“In contrast, the provisional aggregate expenditure of the FGN rose from N717.6bn in December 2020 to N770.77bn in the reporting period, but remained 14.4 percent below the monthly target of N900.88bn.
“Fiscal operations of the FGN in January 2021 resulted in a tentative overall deficit of N485.51bn.”
According to the report, the FGN’s total outstanding public debt as of the end-September 2020, stood at N28.03tn, with domestic and external debts accounting for 56.5 percent and 43.5 percent, respectively.