Economic crisis: FG records N14.28tn revenue shortfall

The Federal Government has recorded a revenue shortfall of N14.28tn under the regime of the President, Major-General Muhammadu Buhari, (retd), according to data from the Budget Office of the Federation.

The data was obtained from the budget implementation reports for 2016, 2017, 2018, 2019, 2020, 2021, and 2022 (January to November).

In the period under review, the Federal Government projected N43.05tn as revenue to fund its budget but made only N28.77tn (66.83 per cent of expected revenue).

In 2016, the Federal Government’s projected revenue was N3.86tn, but it realised only N2.95tn. In 2017, revenue projection was N5.08tn while revenue realised was N2.66tn. In 2018, revenue projection was N7.17tn, while the government and realised N3.87tn. In 2019, revenue projection was N6.99tn and realised revenue was N4.12tn.

In 2020, the Federal Government’s projected revenue was N5.84tn, but actual revenue amounted to N4.04tn. In 2021, revenue projection was N6.64tn, actual revenue was N4.64tn. In 2022, projected revenue was N7.48tn, actual revenue amounted N6.49tn.

The revenue shortfalls echoes concerns by the Minister of Finance, Budget, and National Planning, Zainab Ahmed, over the government’s inability to generate adequate revenue. Nigeria relies on oil for the majority of its revenue and in recent times, this revenue source has been impacted by low production and subsidy payment.

From January to July 2022, Nigeria’s oil production slumped by 28 million barrels

Rising shortfall has led to an increase in the nation’s debt profile. The Federal Government has consistently relied on the Central Bank to fund its revenue shortfalls. In 2022, it borrowed N6.31tn from the CBN through Ways and Means Advances increasing its total borrowings from the CBN to N23.77tn as of October 2022.

Raising concerns over this, the World Bank in its December 2022 update, said “Moreover, financing of the fiscal deficit through Ways and Means continues to fuel inflation by increasing liquidity in the money market.

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