The Federal Government of Nigeria reduced its deficit spending by 29% in the first quarter of 2024, bringing the deficit down to N2.83 trillion from N3.99 trillion in the same period of the previous year.
This improvement was revealed in the Central Bank of Nigeria’s (CBN) Statistical Bulletin for Q1 2024. The decline in deficit was attributed to a 20.5% year-on-year increase in revenue and a 15.8% year-on-year reduction in expenditure.
The CBN reported that the government’s expenditure fell to N4.59 trillion in Q1 2024 from N5.45 trillion in Q1 2023. Meanwhile, revenue grew to N1.76 trillion in Q1 2024 from N1.46 trillion in Q1 2023.
For the full year, the CBN projects a deficit of 3.9% of GDP, to be financed through new borrowings, asset sales, privatization proceeds, and multilateral/bilateral project-tied loans.
The CBN’s Macro Economy Outlook for 2024 anticipates federal government expenditure, including GOEs and project-tied loans, to reach N28.77 trillion by year-end. Revenue is expected to grow to N19.59 trillion in 2024 from an estimated N8.36 trillion in 2023.
The fiscal outlook remains optimistic, driven by reforms to enhance tax administration and public expenditure efficiency, supported by the Medium-Term Expenditure Framework and Fiscal Strategy Papers for 2024-2026.