Deficit spending by Nigeria’s Federal Government surged by 28% year-on-year, hitting N12.1 trillion in the first ten months of 2024, compared to N9.8 trillion during the same period in 2023. This figure exceeds the 2024 deficit target of N9.8 trillion by 31%, despite a 36% increase in federal revenue.
The boost in revenue was fueled by a 54.5% rise in earnings to the Federation Account, which totaled N20.214 trillion between January and October 2024, up from N13.079 trillion in 2023, according to data from the Central Bank of Nigeria (CBN).
Quarterly, revenue grew from N4.973 trillion in Q1’24 to N6.388 trillion in Q2’24, then increased by 7.5% to N6.865 trillion in Q3’24. However, October’s revenue fell by 7.9% to N1.988 trillion compared to the previous month.
Deficit spending followed a fluctuating trend, reaching N4.18 trillion in Q1’24 and rising slightly to N4.26 trillion in Q2’24 before dropping by 23% to N3.3 trillion in Q3’24. In October alone, the deficit was N361.89 billion.
The report highlighted that government expenditure rose by 17.8% from N5.6 trillion in Q1’24 to N6.7 trillion in Q2’24 but later dropped to N5.6 trillion in Q3’24. In October, expenditure increased by 28.4% month-on-month to N1.83 trillion.
According to the CBN, higher capital spending drove the increase in October’s expenditure. However, the government’s revenue and expenditure targets remain unmet, emphasizing the need for broadening the tax base and diversifying revenue streams.
