If you are like me thirsty for economic data, then the Central Bank’s second quarter economic report is one with enough to quench your thirst. Take for instance the breakdown on Federal Government Revenue and Expenditure as depicted below;
A sum of the total revenue received by the FG (not states) for the last 10 quarters in which GEJ was mostly president, was about N7,086.5b (N7trillion). The cumulative amount spanning over a period of 10 months is a 6% CAGR impressive if you ask me. However, less impressive is how that money has been used over the last 10 months. According to the data, about N10,447.5b (N10tr) has been spent over the same period, leaving a deficit of N3.3tr along the way. This is clearly a case of spending beyond your means right? Most economist unlike accountants tend to view government spending differently and will usually measure the amount of deficit relative to the country’s GDP. Based on that it appears we are ok, as the deficit is just about 10% of GDP.
However, what is worrisome to all is what the money is used for. According to that same report, 73% was used for recurrent expenditure and 23% Capital Expenditure. Out of the total spent on recurrent expenditure 89.3% was for non-debt expenses like salaries, overhead cost etc.