The Federal Government’s fiscal deficit rose month-on-month by 0.1 per cent to N824.79bn in April from N823.91bn in March, the Central Bank of Nigeria disclosed in its April 2024 Monthly Economic Report.
A fiscal deficit is a shortfall in a government’s revenue compared with its expenditure.
The CBN report released on Thursday showed that the deficit was 7.92 per cent higher than the budgeted N764.19bn for the period.
The bank also said consumer credit outstanding declined significantly by 53.83 per cent to N3.8tn at the end of April 2024 from the level in the preceding month.
According to CBN, the expansion in deficit was due to a 0.55 per cent MoM decline in retained revenue to N419.91bn in April from N422.23bn in March.
It said the decline in revenue was a result of lower receipts from exchange gains.
The report read, “The fiscal operations of the Federal Government of Nigeria, in April resulted in an expansion in the fiscal deficit.
“Provisional data showed that primary and overall deficits rose to N260.98bn and N824.79bn, respectively, from N249.43bn and N823.91bn in the preceding month. The expanded deficit reflected the sharper decline in retained revenue.
“FGN retained revenue also dipped in the review period due to lower receipts from exchange gains.
“Provisional data indicated that, at N419.9bn, FGN retained revenue fell relative to the level in March 2024 and the monthly benchmark by 0.55 and 74.29 per cent, respectively.”
Similarly, the apex bank noted that government expenditure for April declined MoM by 0.16 per cent to N1.246tn from N1.244tn in March due to reduced capital spending.
“The provisional data showed that aggregate expenditure of the FGN declined due to reduced capital spending.
“At N1,244.71 billion, provisional data indicated that expenditure was 0.12 per cent below the level in the preceding month, and 48.10 per cent short of the projected spending of N2,398.12 billion.
“The decline was attributed, largely, to a reduction in capital outlay in the review period. Further analysis showed that recurrent and capital accounted for 84.5 and 6.30 per cent, respectively, while transfer payments constituted 9.2 per cent.”
Meanwhile, customer credit outstanding reduced significantly by 53.83 per cent to N3.8tn due to low loan appetite by customers fuelled by the high interest rate.
The decline was on account of the 60.79 per cent fall in personal loans to N2.95tn. However, retail loans increased by 18.81 per cent to N856.77bn.
“A decomposition indicated that personal loans accounted for 77.48 per cent of the total consumer credit, while retail loans accounted for the balance,” The CBN said.