Govt debt now N24.52tn, recorded N561.71bn deficit ; Central Bank

The Federal Government’s outstanding as of March 31 stood at the N24.52tn (excluding the states and the Federal Capital Territory Administration), the Central Bank of Nigeria has said.

The apex bank also disclosed that the Federal Government recorded a revenue deficit of N561.71bn in May. It disclosed these in its ‘Economy monthly report’ for the month of May. The report was released on Tuesday.

The report said, “Federation account operations driven by the slump in crude oil prices in March 2020, federally collected revenue in May 2020 declined by 31.6 per cent and 12.0 per cent to N625.91bn, relative to its levels in April 2020 and May 2019 respectively.

“The receipt was 52.4 per cent below the monthly benchmark. Retained revenue of the Federal Government in May was N276.99bn, while total expenditure was N838.71bn, resulting in an estimated deficit of N561.71bn. Total FGN debt outstanding at end-March 2020, stood at N24.52tn, 59.3 per cent of which was domestic and 40.7 per cent external.”

Although a gradual easing of lockdown measures and border restrictions began in May, the report said federally collected revenue (gross) was impaired by continued slowdown in economic activities.

Revenue from oil sources fell below the benchmark and the level in April 2020.

This was because the price of Bonny Light crude dropped sharply from $55.66 in February to $32.01 in March; the reference price of crude oil sales for NNPC’s earnings in May 2020, it stated.

The report said the federally collected revenue in May 2020 was estimated at N625.91bn.

This represented respective declines of 52.4 per cent and 31.6 per cent, relative to the monthly benchmark estimate of N1.31tn and the April 2020 receipt of N915.28bn.

Credit: punchng.com

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