Pressures easing as Nigeria’s budget deficit drops by 29% to N2.83tn

Nigeria’s fiscal pressures seem to be easing as the country’s budget deficit dropped by 29 percent to N2.83 trillion in the first quarter of 2024 from N3.96 trillion in the same period of 2023.

According to CBN’s quarterly statistical bulletin, the country’s revenue in the first quarter of 2024 increased to N1.76 trillion while its expenditure stood at N1.53 trillion during the period.

A recent report by FSDH Research noted that higher inflows will improve fiscal deficit and debt sustainability ratio in the short term.

This is as Financial experts including Director of the Centre for the Promotion of Private Enterprise, Muda Yusuf said more inflows into government confers means there will be more room for capital projects.

He backed the government’s windfall tax on banks’ foreign exchange gains in 2023.

Recall that the Senate last month passed the 70 percent windfall to support the country’s N6.2 trillion supplementary budget.