Government records N1.90tr deficit financing in second quarter – Guardian

CBN

An estimated deficit of N1,090.96 billion was recorded in the fiscal operations of the Federal Government at the end of the second quarter of this year.

According to the Central Bank of Nigeria (CBN), in its Second Quarter (Q2) Economic Report, the deficit indicates an increase of 96.4 per cent above the provisional quarterly budget deficit of N555.49 billion.

The report just released and obtained by The Guardian yesterday said provisional data indicated that federally-collected revenue during the second quarter of 2016 was N1,159.05 billion which represents 51.3 per cent, and is 8.6 per cent lower than the quarterly budget estimate and receipts in the preceding quarter, respectively.

The CBN said: “The decline in federally-collected revenue (gross) relative to the budget estimate was attributable to the shortfall in receipts from both oil and non-oil revenue, during the reviewed quarter.”

It further reviewed that at N537.19 billion or 46.3 per cent of the total revenue, gross oil receipt was lower than the provisional quarterly budget and the receipts in the preceding quarter by 39.2 per cent and 19.4 per cent, respectively. It also said the decline in oil revenue relative to the budget estimate was caused by the persistent fall in receipts from crude oil and gas occasioned by low price of crude oil in the international market and the series of production shut- ins and shut-downs.

Read more at http://guardian.ng/news/government-records-n1-90tr-deficit-financing-in-second-quarter/