Nigeria’s budget deficit has risen to N12.95 trillion, exceeding the budgeted target by 41%. This represents a 0.77% year-on-year increase from N12.85 trillion recorded in 2023.
According to the Central Bank of Nigeria’s (CBN) Quarterly Economic Reports for 2024, the federal government’s expenditure stood at N21.5 trillion, up by 12% year-on-year from N19.19 trillion in 2023.However, revenue grew by 34.8% to N8.55 trillion in 2024 from N6.34 trillion in 2023.
Despite this growth, revenue fell short of the 2024 budget target by 56%.The CBN attributed the rise in expenditure to higher personnel costs and interest payments. Personnel costs increased by 23.31%, while interest payments rose by 6.98%.
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Recurrent expenditure accounted for 75.13% of total expenditure, with capital expenditure and transfer payments making up 17.1% and 7.77%, respectively.The federal government’s retained revenue rose by 10.40% to N2.52 trillion in the fourth quarter of 2024.
This increase was driven by higher receipts from the federation account, non-oil excess, and independent revenue.Despite the growth in revenue, the federal government’s deficit remained significant. The overall deficit narrowed by 3.61% to N3.08 trillion in the fourth quarter of 2024.
The CBN’s report highlights the challenges facing Nigeria’s economy, including a significant budget deficit and revenue shortfalls. Addressing these challenges will be crucial to achieving sustainable economic growth.Key Phrases: Nigeria’s Budget Deficit, Revenue Growth Amid Deficit
