According to data received from the Central Bank of Nigeria (CBN), the budget deficit of the Federal Government increased from N491.28 billion in March to N643.09 billion in April.
The 14.3% increase in FGN retained revenue was countered by a 23.8% increase in public spending, which increased the fiscal deficit, according to the banking regulator’s April economic report. The FGN’s preliminary fiscal deficit, at N643.09 billion, was 30.9% more than it was the month before.
The study claims that even if stronger sales results were achieved in April 2022, the financial environment remained difficult. Provisional federal tax collections increased by 66.3% from their level in March, although they fell 14.7% short of the budget.
The increase was, largely, attributed to the higher receipts from Petroleum Profit Tax & royalty and corporate tax. In terms of share, non-oil revenue maintained its dominance of gross federation receipts, accounting for 65.6 per cent, while oil revenue constituted the balance of 34.4 per cent.
Further analysis showed that oil revenue, at N450.06bn, was above the level in the preceding month by 72.5 per cent, but below the prorated budget by 43.2 cents.
The increase in oil revenue was ascribed to increased earnings from PPT & royalty, reflecting an uptick in oil prices in the international market. Similarly, non-oil receipts at N857.68bn, were above the earnings in March and the prorated budget by 63.3 per cent and 8.8 per cent, respectively.
The surge in non-oil revenue was attributed to the three-fold rise in corporate tax, reflecting the seasonality effect of corporate tax collection as the deadline for companies to file their returns approached.
The sum of N725.57bn, 22.9 per cent above the N590.55bn disbursed in March, was distributed to the three tiers of government after statutory deductions and transfers.
