FG Retains N4.23trn Revenue, Records N5.33tn Deficit In 8 Months

By The Evangelist
October 22, 2022

FG spent N9.56trillion, from January to August 2022, out of N11.55trillion pro rata expenditure projected for the period.

The Federal Government has disclosed that it recorded a deficit of N5.33tn between January and August 2022, which is N430.82billion above the prorate level.

Of the N9.56trillion spent in eight months, N3.52trillion was expended on debt service while N2.89trillion was used for personnel costs and pensions. The total expenditure projected for the whole of 2022 is N17.32trillion.

The Minister of Finance, Budget and National Planning, Dr Zainab Ahmed, during the ministerial presentation of the 2023 budget recently in Abuja, says the Federal Government’s retained revenue was N4.23 trillion as of August 2022, representing 64 per cent of the pro-rata target of N6.65trillion.

She disclosed that the Federal Government’s share of oil revenues in 2022 was N395.06bn, representing 27.1 per cent performance, while non-oil tax revenues totalled N1,549.91trillion, indicating 102.9 per cent performance.

Ahmed further revealed that the Company’s Income Tax and Value Added Tax collections this year totalled N826.27billion and N210.36billion respectively, representing 136.3 per cent and 99.6 per cent of their respective targets.

Customs’ collections comprising import and excise duties, fees, and federation account special levies fell short of the target by N102.51billion (17 per cent).

She says, “The Customs introduced that thing and it has created a lot of revenue setbacks for the government. The government should look at it seriously and reduce it and cancel the VIN. It is illegal and should be cancelled,” the founder of the National Council of Managing Directors of Licensed Customs Agents, Mr Lucky Amiwero, told The Punch recently.

According to Ahmed, the key parameters and other macroeconomic projections driving the medium-term revenue and expenditure framework had been revised in line with the emergent realities, including the GDP growth (from 4.20 to 3.55 per cent in the 2022 forecast).

For the 2023 budget, she said investment, especially from foreign sources, was expected to be hit by interest rate hikes in advanced economies, foreign exchange management concerns in Nigeria and other domestic challenges, including insecurity.

“Overall budget deficit is N10.78tn for 2023. This represents 4.78 per cent of GDP,” Ahmed said, noting that the budget deficit would be financed mainly by borrowings from domestic sources (N7.04tn); foreign sources (N1.76tn); multilateral /bi-lateral loan drawdowns (N1.77bn), and privatisation proceeds (N206.18bn).

The Federal Government, in 2020, launched the Strategic Revenue Growth Initiative with a view to tapping sources that would boost and diversify Nigeria’s revenue base.