FG records N524.25bn fiscal deficit in May, says CBN

The Federal Government’s fiscal deficit dropped to N524.25billion in May from N643.09billion in April, according to figures obtained from the Central Bank of Nigeria (CBN).

The banking regulator’s May 2022 economic report stated that, the disproportionate reduction in expenditure and revenue outcomes resulted in a contraction in the overall fiscal deficit, during the period.

“Following the 14.0 per cent decline in government spending and 7.2 per cent fall in FGN retained revenue, the provisional fiscal deficit, at N524.25 billion, was 18.5 per cent and 1.5 per cent below the level in April and the budget benchmark, respectively.”

“As at end-March 2022, consolidated public debt outstanding stood at N41,604.06 billion (or 18.8 per cent of GDP), reflecting an increase of 5.2 per cent, relative to the level at end-December 2021. Domestic debt accounted for 60.1 per cent of total debt, while external debt constituted 39.9 per cent.

“Of the consolidated public debt outstanding, FGN (including state governments’ external debt, which forms part of the FGN’s contingent liability) accounted for N36,761.22 billion (88.4 per cent), while the State governments’ domestic debt stock constituted the balance of N4,842.84 billion (11.6 per cent).

“Of the FGN’s share of the total debt outstanding, domestic debt stock constituted N20,144.03 billion (54.8 per cent), while external debt accounted for N16,617.19 billion (45.2 per cent).

“FGN bond issues maintained its dominance, accounting for 70.7 per cent of the total domestic debt, followed by Treasury Bills (21.9 per cent), Promissory Notes (3.8 per cent), FGN Sukuk (3.0 per cent), and others (0.6 per cent).

“Regarding holdings of Nigeria’s external debt, Multilateral, Commercial and Bilateral loans accounted for 47.4 per cent, 39.8 per cent and 11.3 per cent, respectively, while ‘other’ loans constituted 1.5 per cent,” the report said.

The report also said that debt service obligations in the first quarter of 2022, amounted to N897.17 billion, compared with N428.60 billion in the fourth quarter of 2021, attributing the increase in debt service to the redemption of matured debt obligations.