The Federal Government recorded a fiscal deficit of N451.22bn in October 2020.
The Central Bank of Nigeria disclosed this in its monthly economic report for October which was released on Tuesday.
Part of the report read, “At N616.35bn, gross federally collected revenue in October 2020 was below the budget benchmark by 27.2 per cent.
“It declined by 18.3 per cent and 33 per cent when compared with the level in the preceding month and the corresponding period of 2019 respectively.
“This was attributed to declines in both oil and non-oil revenue components.
“Federal Government retained revenue was N274.48bn in October 2020, indicating a drop of 6.6 per cent and 52.8 per cent relative to the levels in the preceding month and corresponding period of 2019.
“Driven by the rise in personnel costs and capital releases, provisional aggregate expenditure rose to N725.7bn from N712.3bn in the preceding period.
“Consequently, estimated fiscal deficit in October widened to N451.22bn, from N418.5bn in September 2020.”
According to the report, the total Federal Government’s debt outstanding as of end of June 2020 was N31.01tn; with domestic and external debt components accounting for 57.6 per cent and 42.4 per cent of the total debt stock respectively.
Due to the slow pace of global economic recovery and the resurgence of COVID-19 cases in some European, Asian and Latin American countries, which depressed global demand and dampened crude oil prices, the federally collected revenue in October 2020 amounted to N616.35bn, reflecting a shortfall of 27.2 per cent relative to the N846.84bn budget benchmark.
It also fell by 18.3 per cent and 33 per cent compared with the amounts in the preceding month and the corresponding period of 2019 respectively.
Netting off deductions and transfers and accounting for additional revenue from exchange rate gain, excess oil and excess non-oil revenue sources, a net balance of N616.02bn was distributed among the three tiers of government.
Allocations to the three tiers of government fell in October 2020 due to the decline in distributable revenue by 5.1 per cent, 8.5 per cent and 0.8 per cent, relative to the levels in the preceding month, corresponding period of 2019 and the budget benchmark.
Decline in receipts from Petroleum Profit Tax and royalties, was attributed to the decrease in oil revenue in October 2020.
Relative to the budget benchmark and the corresponding period of 2019, oil revenue fell by 41.8 per cent and 50 per cent respectively.
Although at N96.53bn, domestic crude oil and gas sales rose substantially by 103.6 per cent relative to receipts in September 2020, it was less than the collections in October 2019.
The value of crude oil and gas exports fell by 64.8 per cent below its level in the corresponding period of 2019.