FG’s deficit hits N12.95tr, exceeds budgeted target by 41%

But revenue grew 34.8% to N8.6trn

By Elizabeth Adegbesan

The Federal Government (FG) recorded a N12.95 trillion budget deficit in 2024.

This represents a 41 percent increase from its N9.16 trillion budgeted deficit for the review period.

Details of data from the Central Bank of Nigeria, CBN, Quarterly Economic Reports for 2024 showed that the deficit increased by 0.77 percent Year-on-Year (YoY) compared to N12.85 trillion recorded in 2023.

Further breakdown of data showed that in 2024 the FG expenditure stood at N21.5 trillion, up by 12 percent YoY from N19.19 trillion in 2023, but down by 25.2 percent from the 2024 budget of N28.76 trillion.

However, revenue grew YoY by 34.8 percent to N8.55 trillion in 2024 from N6.34 trillion in 2023 and down by 56 percent from the 2024 budget of N19.56 trillion.

In its fourth quarter 2024 Economic Reports, the apex bank noted that FG’s expenditure rose by 2.22 percent to N5.6 trillion on account of higher personnel cost and interest payments.

“At N5.6 trillion, provisional aggregate expenditure was 2.22 per cent above the level in the preceding quarter, but was 22.09 per cent short of the quarterly target of N7.19 trillion. “The rise in expenditure relative to the preceding quarter was associated with the increase in interest payments and personnel costs, which rose by 6.98 and 23.31 per cent, respectively.

“Further analysis of total expenditure showed that recurrent (75.13 percent) accounted for the largest share outlay, with the remainder split between capital (17.1 percent) and transfer payments (7.77 percent).

On revenue, CBN said: “FGN retained revenue rose in the review period, due to higher receipts from the federation account, non-oil excess, and FGN independent revenue. At N2.52 trillion, provisional FGN retained revenue was 10.40 per cent above the level in Q3’24, but was 48.57 per cent below the benchmark.

“The fiscal operations of the FGN resulted in a narrower deficit in Q4’24. Provisional data showed that primary deficit narrowed by 22.62 per cent, relative to the level in the preceding quarter.

“The overall deficit also reduced by 3.61 per cent to N3.08 trillion during the review quarter, reflecting the improved balance that resulted from a more than proportionate increase in revenue over expenditure.”