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FG Records N3.05trn Fiscal Deficit In Eight Months
The Federal Government recorded a fiscal deficit of N3.05trillion in its operations between January and August this year; figures obtained from the Central Bank of Nigeria (CBN) have shown.
The 2019 budget signed by President Muhammadu Buhari had capital expenditure of N2.09trillion, recurrent expenditure of N4.05trillion, statutory transfers of N502billion, and special intervention of N500billion.
The budget also had debt service of N2.25trillion. Out of this figure, N1.7trillion was approved for domestic debts, while the sum of N433billion was provided for foreign debts.
Similarly, the sum of N110billion was approved for sinking fund to retire maturing debt obligations.
To fund the budget, the Federal Government had planned to generate the sum of N7trillion as revenue.
This is made up of N3.69trillion from oil sources, while N3.31trillion is projected as revenue from non-oil sources.
Details of the fiscal operations of the Federal Government as contained in the CBN economic report for August this year showed that the government had not been able to generate adequate revenue to meet its expenditure.
For example, the Federal Government’s retained revenue was put at N343.4billion in January while its expenditure was N868.3billion.
This resulted in a deficit of N524.9billion.
For the month of February, March and April, the Federal Government’s retained revenue was put at N318.1billion, N392.2billion and N386.2billion while expenditure was put at N1.09trillion, N532.3billion and N1trillion, respectively.
This resulted in fiscal deficits of N780.1billion, N140.1billion and N618.9billion, respectively.
For the months of May, June and July, the Federal Government based on the CBN data recorded revenue of N279.7billion, N310.6billion and N381.8billion while expenditure was put at N499.5billion, N814.5billion and N490.9billion, respectively.
The fiscal deficit during the period was put at N219.8billion, N503.9billion and N109.1billion, respectively.
In the month of August, the government’s revenue was estimated at N308.1billion while the total expenditure incurred during the period was N464.3billion.
This resulted in a deficit of N156.2billion during the period.
The report read in part, “At N464.31billion, the estimated total expenditure of the Federal Government was below the monthly budget estimate of N865.31billion by 46.3 per cent.
“It was also below the N490.87billion recorded in the preceding month by 5.4 per cent.
“A breakdown showed that recurrent and capital expenditure constituted 75.5 per cent and 18.6 per cent of the total expenditure, respectively, while transfers constituted 5.9 per cent in the review period.
“Of the recurrent expenditure, non-debt obligation was 69.3 per cent, while debt service payments accounted for 30.7 per cent of the total.
“Consequently, the fiscal operations of the Federal Government resulted in a deficit of N156.18billion, compared with the monthly budget deficit of N159.87billion.”
The Senior Economist, World Bank, Yue Man Lee, said the implications of having low revenue was that the amount Nigeria could spend on human development would be restricted.
Lee while speaking during the unveiling of a report by the BudgIT on state governments’ sustainability in Abuja said over the years, the fiscal capacity of government at all levels to generate the needed revenue to finance their operations had reduced.
She said, “The broader fiscal challenge that Nigeria faces is low revenue that constrains the budget envelop.
“This, when put in plain terms, is how much revenue that is available to spend on public service and investments in human capital.
“Nigeria is spending, and government spending as a percentage to Gross Domestic Product (GDP) is way lower than other countries at similar income per capital level. And the reason behind this is because of the exceptionally low revenue that Nigeria collects.”
Lee said with the country having revenue to Gross Domestic Product ratio of about eight per cent, there was a need to come up with measures to boost revenue.
She said the low level of government spending on capital projects contributed to low level of development outcomes.
Also, the Lead Director, Centre for Social Justice, Eze Onyekpere, said there might be a central challenge in the realisation of the revenue and funding needed to implement the 2019 budget.
This, according to him, is against the background of the revelation by the Minister of Finance, Zainab Ahmed, that only 55 per cent of the 2018 revenue projection was realised.
He said the revenue underperformance followed the trajectory in previous years where the Federal Government consistently failed to realise its budgeted revenue.
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Soyinka Demands Accountability Over Extra-Judicial Killings
Nobel Laureate, Professor Wole Soyinka, has called on Nigerians to reject silence in the face of extrajudicial killings and other abuses of human rights.
Soyinka stressed that accountability and civic courage remain essential to rebuilding public confidence in the nation’s institutions.
He made the call during the 28th Wole Soyinka Lecture held in Port Harcourt, last Friday as part of activities marking his 92nd birthday.
The lecture, themed “Reclaiming the Nigerian State through Accountability, Justice and Civic Courage,” drew participants from different sectors of society.
The renowned playwright and human rights advocate said the country’s greatest tragedy was not only the unlawful killings carried out by state and non-state actors, but also the silence that often follows such incidents, allowing perpetrators to evade justice.
According to him, indifference by citizens to abuses of power and violations of fundamental human rights has contributed to the persistence of extrajudicial killings and other forms of injustice across the country.
Soyinka said he dedicated this year’s lecture to victims of unlawful killings, noting that the event was intended to honour individuals who had lost their lives as a result of failures within the justice system and society’s inability to protect the sanctity of human life.
He stressed that the lecture was dedicated to what he described as the basic unit of every society – the human being, and urged Nigerians to place greater value on human dignity irrespective of ethnicity, religion or social status.
The Nobel Laureate recalled several incidents of violence, including the fatal shooting and killing of a young man in Ugheli in Delta State by a police officer, and the mob killing of Deborah Yakubu in Sokoto State sometime ago, lamenting that many of those responsible are yet to face justice.
He expressed concern that some perpetrators of violent crimes had openly admitted their actions without fear of prosecution, describing such situations as evidence of serious failures within the nation’s justice system.
Soyinka maintained that when justice is delayed or denied, public confidence in state institutions continues to erode, thereby encouraging further violations of human rights.
Responding to critics who accuse him of promoting religious or ethnic divisions whenever he spoke on such issues, Soyinka dismissed the allegations and pointed out that his advocacy has always centred on the protection of human life and the rule of law.
He urged Nigerians to remain vigilant and continue demanding justice in cases of alleged extrajudicial killings, including the recent shooting of a young man by a police officer, stressing that every life deserves equal protection under the law.
The literary icon also recalled an earlier pledge by a past incoming president to make public the files relating to unresolved assassinations and extrajudicial killings, questioning the status of the promised investigations.
He challenged citizens to continue asking questions about unresolved cases, insisting that justice, accountability and respect for human dignity are indispensable to building a peaceful, democratic and inclusive Nigerian society.
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FAAN Backtracks, Says No Fire Incident At Lagos Airport’s Terminal 2
The Federal Airports Authority of Nigeria (FAAN) has clarified that there was no fire at Terminal 2 of the Murtala Muhammed International Airport, Lagos, contrary to its earlier advisory.
Earlier yesterday, FAAN had announced that a fire incident had occurred at Terminal 2 of the nation’s busiest airport, and assured that its Aerodrome Rescue and Firefighting Service had been deployed to contain the situation.
There were also reports that activities were briefly disrupted at the airport yesterday after smoke was seen inside parts of the terminal.
Videos circulating online showed passengers kept standing outside the terminal while firefighters responded to the incident.
However, in an update issued less than two hours later by the Director of Public Affairs and Consumer Protection, Henry Agbebire, and posted on FAAN’s official X handle, the authority said preliminary findings showed that the smoke seen at the terminal was caused by the discharge of the facility’s FM-200 fire suppression system.
“Further to our earlier advisory regarding the incident at Terminal 2 of the Murtala Muhammed International Airport, Lagos, the Federal Airports Authority of Nigeria (FAAN) wishes to provide the following update,” the statement read.
“Preliminary findings indicate that there was no fire at the terminal. The smoke observed within the affected area resulted from the discharge of the terminal’s FM-200 fire suppression system. The reason for the activation of the fire suppression system is currently being investigated,” FAAN stated.
The authority said normal operations had resumed at the terminal while investigations were ongoing to determine the cause of the incident.
“Normal operations have since resumed at the terminal, while detailed investigations are ongoing to determine the exact cause of the incident,” the statement added.
The authority thanked passengers, airlines, airport users and other stakeholders for their understanding and cooperation.
FAAN appreciated the understanding and cooperation of passengers, airlines, airport users and all stakeholders, and reiterated its commitment to the safety and security of all airport operations.
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