The Federal Government recorded a N1.62tn fiscal deficit in the first quarter of 2022.
The Central Bank of Nigeria disclosed this in its first quarter report for 2022.
According to the report, the Federal Government’s fiscal deficit fell from N1.84tn in the fourth quarter of 2021 from N2.49tn in the first quarter of 2021.
“At N1.62tn, the provisional fiscal deficit of the FGN was 11.8 per cent below the level in the preceding quarter, but overshot the quarterly target of N1.59tn by 1.3 per cent,” the report said.
It added that receipts into the federation account declined by 2.5 per cent and 45.0 per cent respectively, relative to the preceding quarter and target, following a sharp decline in oil revenue sources.
Gross federation receipts in the first quarter of 2022 amounted to N2.53tn. This compares with N2.59tn in 2021 fourth quarter and the benchmark of N4.59tn.
Non-oil revenue accounted for 68.4 per cent of the total collection, while oil revenue contributed 31.6 per cent.
The observed drop in federation receipts was triggered by the decline in all components of oil revenue (crude oil and gas exports, petroleum profit tax and royalties, domestic crude oil and gas sales, among others).
At N799.10bn, oil receipts amounted to 28.3 per cent below earnings in the last quarter and 66.4 per cent under projected earnings, the report further said.
In contrast, non-oil receipts, which stood at N1.73tn, outperformed collections in the preceding quarter, but was 22.1 per cent below target.
The uptick in earnings, relative to 2021Q4, was attributed, largely, to a significant increase in collections from Value-Added Tax and Federal Government independent revenue.
Improvement in these revenue components underscored the intensification of non-oil revenue drive through broadening the tax net and plugging of revenue leakages, particularly in Government-Owned Enterprises, it added.
The report said a net balance of N1.86tn was retained in the federation account for distribution to the three tiers of government after taking account of statutory deductions, transfers and additional inflows from Exchange Gain and Non-oil Excess revenue.
Of this amount, the federal, state and local governments received N720.22bn, N590.44bn and N436.37bn, respectively, while the balance of N118.01bn was allocated to the 13.0 per cent derivation fund for distribution among oil-producing states.
Total disbursement in the first quarter of 2022 was 10.7 per cent and 48.2 per cent, lower than the budget benchmark allocations in the fourth quarter of 2021 and the budget benchmark, respectively.